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Quarter of German Households Stuck on Costly Default Energy Tariffs

Households in default supply paid €3 billion more than the cheapest tariffs in the first half of 2025, prompting experts to call for immediate tariff reviews.

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Overview

  • One in four electricity customers and nearly one in five gas customers remain on default supply contracts, according to Bundesnetzagentur data.
  • Default supply households spent €8.5 billion on electricity and gas in the first half of 2025 versus €5.5 billion under the cheapest tariffs, resulting in €3 billion of avoidable costs.
  • Average default electricity prices were 43.96 cent per kilowatt-hour compared with 27.85 cent in the cheapest plans, a 37 percent difference, while gas prices averaged 13.99 cent versus 9.71 cent, a 31 percent gap.
  • A typical household consuming 4 000 kWh of electricity and 20 000 kWh of gas could cut annual bills by around €1 628 by switching out of default supply.
  • Despite 24-hour switching for electricity and planned tax and fee reforms, many consumers remain in default tariffs out of convenience or uncertainty, experts warn.