Switching electricity providers: your contract in 24 hours! This is how it works!

Switching electricity providers: your contract in 24 hours! This is how it works!

From June 6, 2025, it will be technically possible to change electricity providers in Germany within 24 hours on working days. This new regulation is based on an EU directive that aims to increase competition in the energy sector and strengthen consumer protection rights. Previously, the technical change process took up to three weeks, which often led to problems and long waiting times. However, consumers should be aware that the 24-hour period only affects the technical changeover process. The contractual notice periods remain at one month to the end of the contract term Lower Saxony Consumer Center reported.

An important part of this new regulation is the introduction of the market location identification number (MaLo-ID). This ID, which will be required from June 2025, identifies a point of consumption and remains stable even when meters are changed. Consumers should not give out their MaLo ID, which can be found on their electricity bill, carelessly, as they can use it for the automated switching process. This measure should enable providers to terminate contracts efficiently, which should further stimulate the dynamics in the market MDR reported.

Important aspects of switching providers

In addition to the new technical possibilities, the new regulation also brings with it significant changes for consumers. From June 6th, retroactive changes to providers will be excluded, meaning that changes will only be possible on future dates. If the contract is terminated late, the basic provider will step in, which is often associated with higher prices. In addition, landlords and tenants must clarify whether the previously existing electricity contract has been terminated in order to avoid duplicate contracts. If the notice is not given in a timely manner, the previous and subsequent tenants could have to share the costs proportionately.

It is also important that users report their meter readings in good time on the day they move in or move out. If the previous tenant does not move on time, the contract remains in effect, which can cause additional complications. While these regulations are intended to provide greater transparency, they require a certain level of attention and planning from consumers to avoid unforeseen costs.

Overall, the reform aims to promote competition between providers and offer consumers more choice. With the ability to switch faster and more efficiently, providers could increasingly score points with attractive prices and conditions in the future, which could revitalize the entire energy market.