Electricity Prices Set to Drop in 2025, Gas Prices on the Rise
An analysis by Verivox indicates that approximately 1.8 million electricity customers in Germany will benefit from price reductions in 2025, with average savings of around 189 euros annually. This positive trend is attributed to adjustments made by basic suppliers, who are responsible for the majority of household energy supply in specific network areas. The analysis revealed 280 price reductions averaging ten percent, while 47 price increases affecting about 300,000 households resulted in an average additional cost of 116 euros.
Conversely, the outlook for gas prices is less favorable. Despite some reductions, gas prices are generally trending upwards, with costs surpassing 48 euros per megawatt hour in recent reports. This increase is influenced by ongoing geopolitical tensions, particularly the war in Ukraine, which has raised concerns about energy supply stability. For gas, 64 price increases are expected to impact 700,000 households, leading to an average rise of 416 euros. However, 211 price reductions could benefit around 600,000 households, offering potential savings of approximately 381 euros.
Recommendations for Consumers Amid Changing Energy Prices
As energy prices fluctuate, both Verivox and the Federal Network Agency encourage consumers to consider switching their energy suppliers. With the cheapest electricity priced at 26.9 cents per kilowatt hour and gas at 9.2 cents, consumers can potentially save significantly by opting for new customer offers. In 2023, a record 6.02 million households switched electricity suppliers, while 1.8 million made similar changes for gas.
Despite the anticipated savings in electricity, the overall energy landscape in Germany remains costly, with average electricity prices at 43.5 cents per kilowatt hour. The ongoing conflict in Ukraine continues to exert pressure on gas prices, contributing to uncertainty in the energy market.
