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Germany Opens 24-Hour Electricity Switches as Dynamic Pricing Takes Effect

The streamlined switching process will help households tap market-linked price signals for faster cost reductions.

Overview

  • From June 6, electricity providers must complete switching requests within 24 hours on weekdays, and retroactive contract changes will no longer be permitted.
  • Since January, all suppliers are required to offer dynamic tariffs tied to wholesale market prices, enabling consumers to save by shifting usage to periods of abundant wind and solar power.
  • Installing smart meters is essential for tracking and adapting consumption under variable pricing, but slow rollout is limiting households’ optimization opportunities.
  • Analysts estimate consumers can save up to €340 per year by adopting cheaper dynamic plans and roughly €220 more if the proposed electricity tax cut from 2.05 to 0.1 cents per kWh is approved.
  • With households able to shift up to 15.6 TWh of demand to off-peak hours, consumers are urged to safeguard their MaLo-ID and explore flexible usage to maximize savings and grid benefits.