Gas prices are falling: Why switching providers now could be worthwhile

Gas prices are falling: Why switching providers now could be worthwhile

According to a report by Merkur.de, the price of gas for private customers in Germany has fallen significantly in recent years. An analysis by the Federal Association of Consumer Organizations (VZBV) shows that the price of gas has fallen by an average of 87 percent. Particularly in Germany's most populous cities, prices for basic services have risen sharply compared to special contract prices. In Düsseldorf, gas prices rose by 26 percent between January 2022 and January 2023, while in Munich they rose by 175 percent.

This development opens up the possibility for consumers to change their gas supplier in order to benefit from cheaper prices. It should be noted that comparison portals offer a good opportunity to obtain information about the different providers and their prices. However, it should be noted that the cheapest providers are not always listed and that the portals may receive commissions from brokered contracts. Additional conditions such as switching bonuses and tiered prices can also make comparison difficult.

For household customers who expect price increases in the near future, it may make sense to consider changing tariffs or providers. According to the energy expert at the North Rhine-Westphalia Consumer Center, Udo Sieverding, comparison portals currently also offer prices that are lower than the basic supply tariffs, which are sometimes cheaper.

Industry experts attribute the reduced gas prices to a combination of a mild winter and higher than expected gas savings. The market is currently well supplied as European gas storage facilities are fuller than usual. The long-term procurement strategies of the energy suppliers have contributed to the fact that wholesale prices do not have an immediate impact on retail prices. Customers benefited from this strategy last year, although the lower purchasing prices will only have an impact on end customer prices later.

Gas consumption and prices are expected to depend heavily on the weather this year. If the rest of the winter remains mild, prices could experience a low in the summer. However, the risk of an expensive gas shortage remains next winter, although it has fallen significantly. A clear falling price trend is only expected from 2025.

Lower gas prices offer consumers the opportunity to reduce their costs by switching gas suppliers. It is advisable to use comparison portals and carefully examine the different offers in order to find the best tariff. It remains to be seen how prices will develop in the future and whether the current trend will continue.

Source: According to a report by Merkur.de, February 14, 2023, 4:36 p.m., https://www.merkur.de/wirtschaft/gas-gaspreis-gaspreiskappe-verbraucher-verbraucherzentrale-zr-92087481.html