Why Is the Default Gas Tariff Cheaper Right Now?
Default suppliers often buy gas well in advance, so recent price spikes have not yet fully reached them. That means the default gas tariff (Grundversorgung) might now beat a fixed contract.
The default gas tariff is the standard plan with no fixed term and no price guarantee. Fixed 12-month contracts work differently, since they have built more of that price risk into their rate.
The default gas tariff usually costs more than other options, which normally means a risk premium for you. Right now, it works in your favor instead.
How Much Cheaper Is the Default Gas Tariff in German Cities?
In some German cities, the default gas tariff is up to €437 cheaper a year. Memmingen shows the biggest gap among the ten cities compared.
All figures assume yearly use of 15,000 kWh. The table shows the six cities with the largest gaps relative to the cheapest 12-month contract.
| City | Default tariff (Grundversorgung) | Cheapest 12-month contract | Savings |
|---|---|---|---|
| Memmingen | €1,499.40 | €1,937.11 | €437.71 |
| Norderstedt | €1,713.77 | €2,022.56 | €308.79 |
| Passau | €1,698.25 | €1,942.19 | €243.94 |
| Bielefeld | €1,880.53 | €2,113.16 | €232.63 |
| Hamburg | €1,775.68 | €2,004.00 | €228.32 |
| Baden-Baden | €1,733.95 | €1,936.73 | €202.78 |
Run your own comparison, since results vary by region. In many cities, the default tariff is still pricier.
What Should You Do Before Your Default Gas Tariff Price Rises?
To make the most of the gap before prices rise, check a gas comparison using your own postcode and yearly gas use. If the default gas tariff looks cheapest, switch to it for now.
Treat the default gas tariff as a short-term move, since most suppliers are expected to raise prices again by January. No supplier had announced an increase by mid-October.
Suppliers must give six weeks’ notice before raising prices (GVV § 5(2)). A price increase also triggers a special right to cancel, but you still have to send the termination letter yourself.
Compare again once you get a price-increase notice, since that notice also starts your six-week window to cancel.
TIP: Want to switch to a fixed contract once prices rise? Set January 1 as your start date with the new supplier. Do this at least two weeks ahead. The new supplier can then cancel your default tariff for you.
