Since June 6th, customers who change electricity providers in Germany can expect to see their supply switched over within 24 hours.
This comes as the result of a change to the EU's Energy Industry Act, intended to increase competition in the market and protect consumers, according to the Lower Saxony Consumer Advice Centre.
Here's what the change means for you:
Following the rule change on June 6th, if you change electricity tariffs, the switch must be carried out within 24 hours (excluding Sundays).
For household consumers this means that if you switch from one provider to another, you can expect your new provider to start delivering your energy almost immediately.
However, the new legislation does not allow you to unilaterally terminate or shorten an existing contract with an electricity provider.
How does a faster switch support consumers?
According to the Federal Network Agency, until now making such a switch took eight or nine days on average, and sometimes as long as three weeks.
During the interim period before a new tariff kicks in, consumers were often left paying a higher price for “basic supply” electricity. (The basic supply (Grundversorgung) tariff is intended to make sure no one is left without energy if they fail to secure a contract with a supplier, but it tends to cost far more than the prices set in one- or two-year contracts arranged with electricity providers.)
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Shortening the period that customers are left consuming basic supply energy will therefore save them some money.
What are the disadvantages for consumers?
In addition to mandating a 24 hour changeover, the new rules are set to end the possibility of retroactive registration and deregistration.
So going forward you must plan your energy contract changeovers in advance, and set them up for a future date. This may cause inconveniences for anyone moving house who forgets to deregister in good time.
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Also, Elisabeth Aßmann of the Lower Saxony Consumer Advice Centre warns that with the new rules in place consumers should be more cautious when offered a new electricity contract at their front door or over the phone: “If the change of supplier has to be completed within 24 hours … an unwanted contract will also take effect more quickly.”
Bear in mind, however, that consumers will continue to have the right to cancel contracts concluded in this way up to 14 days after signing.
According to EU rules, all member states need to enact these changes to there electricity supply regulations by January 1st, 2026. Germany’s Federal Network Agency hopes that implementing the directive ahead of time will give electricity providers in the country enough time to put the necessary processes in place so that demand wont be disrupted.
With reporting by DPA.
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