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How you can benefit from switching electricity providers - is it worth switching?

Current change

Changing electricity providers is not an everyday occurrence. For the sake of convenience, many consumers stay with the same electricity provider for years. However, you should still consider switching electricity provider to save a lot of money . If you switch electricity every year, you have financial incentives from which you can benefit. This is particularly beneficial for families, where consumption is usually very high. In addition to discounted tariffs, many providers also offer you a price guarantee and a new customer bonus when switching electricity. Here we explain what to look out for.

Counteract higher electricity prices with the electricity change

One of the main reasons for higher electricity prices is the annually rising network charges and levies. Energy suppliers always pass these additional costs on to their customers. Such annual price increases give you enough reason to benefit from a cheaper tariff from another provider by switching electricity. You bypass the price increase and thereby save money.

How is the electricity price made up?

There are a few things to consider when changing power. Your electricity price always consists of the basic price, labor price, duties and taxes. Charges such as the EEG surcharges or network charges as well as taxes are regulated by law and are the same for all providers. The energy suppliers can only set different basic prices and working prices.

  • The basic price is a flat fee that is independent of your consumption.
  • The labor price is the price you pay for the electricity you use in cents per kilowatt hour.

So whoever has a higher consumption pays a higher energy price with a constant energy price. In general, you can remember that if you have a rather low annual consumption, it is financially worthwhile for you to accept a tariff with a lower labor price and a higher labor price. Conversely, if the annual consumption is high, you should pay attention to the lowest possible working price.

What other aspects need to be taken into account when changing power?

In addition to the basic and labor price, there are different ways to save on electricity:

  • Discounts,
  • Price guarantees,
  • Bonus payments,
  • Contract periods and
  • Notice periods.

With the discount campaigns, the energy supplier usually grants a discount on the labor price for a specified period of time. When the discount campaign expires, you then pay the full labor price. If the discount campaign ends with your contract, it is worth switching power again.

Also pay attention to the price guarantee

A price guarantee from the electricity provider does not guarantee an increase in the electricity price within the specified term. The price guarantee can, however, refer to the gross or net price. In the case of a price guarantee for the gross price, the energy supplier undertakes to ensure that the adjustments to the network charges or levies will not be passed on to you. When guaranteeing the net price, the provider may pass on the additional costs to you, even if the price guarantee still exists.

Bonus payments as a new customer

Bonus payments or the instant bonus are different for each tariff or provider. Note the different conditions. In addition to the new customer bonus when switching electricity, for example a one-off payment when signing a contract, there are payments that you only receive after 12 months, provided you extend your contract. Here you should take a look at the conditions for the basic and labor price in the second year before concluding the contract. Sometimes these costs are significantly higher, so you end up paying more. The new customer bonus is only used as a "bait" when switching electricity.

A new electricity contract is usually concluded with a contract term of one year. There is also the choice between contracts with shorter contract periods, for example a contract that can be terminated monthly, which is associated with higher costs, or a contract with a contract period of up to 24 months. With the 24-month contracts you should pay attention to the contract conditions for discounts, price guarantees and bonus payments.

How does the current change work?

  1. First you should compare prices. Use your last electricity bill to know your annual consumption. You can find comparison portals online to give you an initial overview and to find the electricity tariff that is right for you. Alternatively, you can visit the providers' portals directly to find out more about the respective electricity tariffs.
  2. When you have decided on a supplier, you can either fill out a form on the comparison portal or on the portal of the new supplier. To fill out the form, you need your previous customer number with the old supplier, your last annual consumption and the meter number. Alternatively, you can change the electricity by phone by calling the new supplier's hotline. After that, you are almost done your part of the job.
  3. The new electricity provider will terminate your old supply contract and register the electricity change with the network operator. You will be informed of this by post.
  4. Finally, you have to read the current meter reading on the day of the change and inform your new supplier. This completes the power change.

How does the power switch become a success?

You can save a lot of money when switching power. Take the time once a year to compare tariffs and take advantage of bonus payments and guarantees. When looking for a new tariff, you should use your previous consumption as the basis for calculating the electricity price. Pay attention to the lowest possible labor and basic prices and note that not every bonus or discount brings savings. Compare the total price of a contract taking into account the duration and the conditions for discounts and bonus payments. If you follow this advice, you will always find the tariff that is cheapest for you. The power change itself is done quickly and easily.

My name is Quang Lam and I work at Hegner Möller GmbH as Marketing Director. I am very interested in finance and sports. In my free time I like to go running and I also run a running blog. For the Best Credit blog I only write about topics that really interest me.