Electricity & Gas Contracts (Strom & Gas)

When you move into a German flat you are quietly put on the most expensive tariff going. Here is how the system works, how to read your bill, and how a five-minute switch can save you a few hundred euros a year.

⚡ Household basics

The bill nobody explains to you

Electricity and gas run on a default-then-switch system. Understand these four things and you will never overpay or be surprised by the annual bill again.

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You start in Grundversorgung
The default basic supply — legal, but usually the priciest
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~30–40ct
Per kWh of electricity
Varies a lot — a comparison portal shows live prices
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1×/year
The big reconciliation
The annual bill decides your refund or extra payment
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Free
Switching is painless
Your power never cuts out — the grid stays the same
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The one-line version: when you move in, take a photo of your meter reading, then switch from the default Grundversorgung to a cheaper contract on a comparison portal. That is 90% of the value on this page.

How the System Works

Grid operator, supplier, and the default tariff you start on.

  • Grundversorgung (the default)

    Every area has a designated basic supplier (Grundversorger). If you never sign a contract, you are automatically supplied by them at their standard tariff — reliable, but almost always the most expensive. Leaving it is the single biggest saving.

  • Supplier vs grid operator

    The Netzbetreiber owns the wires/pipes and is the same for everyone in your area; your Stromanbieter (supplier) is who you buy energy from and pay. Grid fees are already baked into the price you see, so you only ever deal with the supplier.

  • Electricity and gas are separate

    Strom (electricity) and Gas are two different contracts. You can bundle them with one provider or split them. Many flats heat with gas; others use district heating (Fernwärme) or electric heating and have no gas contract.

  • Your meter (Zähler)

    Each flat has a meter with a Zählernummer (meter number) and a Zählerstand (reading). You give the number and the move-in reading to your provider — it defines where your usage starts.

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Getting Connected When You Move In

A short checklist for your first week in a new flat.

  • 1. Read the meter on day one

    Photograph the meter number and the reading (Zählerstand) the day you get the keys. This protects you from paying for the previous tenant’s usage.

  • 2. You are already supplied

    You do not need to do anything to have power — the Grundversorger covers you automatically from move-in. So there is no rush that leaves you in the dark; the rush is only about saving money.

  • 3. Choose your own contract

    Within the first week or two, compare tariffs and sign up with a cheaper supplier. You will need your address, the meter number, your move-in reading, and a German bank account for the SEPA direct debit.

  • 4. Estimate your usage

    Providers ask your expected annual kWh. Rough electricity guide: ~1,500–2,000 kWh/year for one person, ~3,000–4,000 for a family. Gas for heating varies hugely with the flat — use the previous year’s figure if the landlord can share it.

  • 5. Register your address first

    Some steps assume you have done your Anmeldung and have a German bank account. If not, sort those first.

New to all of this? The first 90 days guide puts utilities in order alongside Anmeldung, banking and insurance, and internet & SIM covers getting online.
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Understanding Your Bill

The monthly instalment, the once-a-year reckoning, and what you are paying for.

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Monthly Abschlag

A fixed instalment based on your estimated yearly usage — not your real usage each month.

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Annual Jahresabrechnung

Once a year your real meter reading is compared to what you paid. You get a refund (Guthaben) or owe extra (Nachzahlung).

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Price = base + per-kWh

A fixed Grundpreis (standing charge) plus an Arbeitspreis per kWh, including taxes and grid levies.

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A big Nachzahlung usually means your monthly Abschlag was set too low for your real usage. After the annual bill, raise your Abschlag so next year’s reconciliation is small — and submit your own meter reading each year rather than letting them estimate it.
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Submit an annual meter reading yourself (most providers let you do it online). Estimated readings are often too high or too low and cause nasty surprises.
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Switching to Save

How to compare, what to watch in the contract, and going green.

  • Use a comparison portal

    Check24.de and Verivox.de list live tariffs for your postcode and estimated usage, sorted by yearly cost. They also handle the switch for you, including cancelling the old contract.

  • Read the contract terms

    Look at the contract length (Vertragslaufzeit, often 12 months), the cancellation notice (Kündigungsfrist), whether there is a price guarantee (Preisgarantie), and how big the first-year bonus (Neukundenbonus) is versus the ongoing price.

  • Beware upfront-payment discounters

    Avoid unknown providers that demand a large prepayment or a full year paid in advance. Several went bust in the energy crisis and customers struggled to get money back. Prefer monthly billing and solid reviews.

  • Green electricity (Ökostrom)

    Certified green-electricity tariffs are widely available and often cost about the same as conventional ones — an easy switch if it matters to you.

  • Switching never cuts your power

    Because the grid is shared, changing supplier is seamless — no engineer visit, no interruption. You can switch again when your contract ends to keep chasing the best price.

Utilities are just one line in your budget. See how your salary nets out with the salary & tax calculator, and the radio bill for the other household charge everyone forgets.

Frequently Asked Questions

The things that trip up newcomers with their first German energy bill.

Usually the supply is never switched off, so the moment you move in you are automatically supplied by the local Grundversorger (basic supplier) under their standard tariff. That keeps the lights on, but it is typically the most expensive option — so you should pick your own cheaper contract soon after moving in. Always take a meter reading (Zählerstand) on move-in day.

Disclaimer: This information is provided for educational purposes only and may not reflect the latest rules, fees or requirements. Always check the latest information from the official sources (the relevant German authority, embassy or official website) before making any decisions.

Last updated: 19 July 2026