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How Do Electricity and Gas Work in Germany? (2026)

By Jules de Bruin, Market ResearcherUpdated August 20 2026 | Found helpful by 4 others

Germany separates the Netzbetreiber, whose network fee you pay whichever retailer you pick, from the Stromanbieter, which you choose. Choose nobody and the Grundversorger supplies you: in Berlin that is 37.93 cents per kWh, about EUR 560 a year above the cheapest switcher tariff at 3,500 kWh. The best bonus-free tariff in the catalogue is Octopus Relax12 at 27.74 cents per kWh. Every annual figure here states the consumption profile it assumes, because without one it is not comparable.

What is the difference between the Netzbetreiber and the Stromanbieter?

The Netzbetreiber owns the cables and the meter at your address. You do not choose it, it follows from your postcode, and its network fee is on your bill whichever retailer you sign with. The Stromanbieter buys the power, sells it to you and writes the bill. That is the only part you switch.

That split is why a German electricity price without a postcode is worthless. Vattenfall lists the same tariff between roughly 26.4 cents per kWh in Cologne and 34.2 cents in Hamburg. Green Planet Energy records a regional spread of up to 5 cents per kWh, and EnBW and MAINGAU publish no national list price for some products at all.

The electricity and gas networks are regulated by the Bundesnetzagentur. It supervises the grids; the tariff prices are set by retailers competing for you.

Which electricity tariffs are worth signing?

Three tariffs, three different answers: the best bonus-free price, the best English-language service, and the lowest first-year bill. Every card states the consumption profile its annual figure assumes.

Octopus Energy

Relax12

4.4

27.74 ct/kWh fixed without any bonus games

Get this tariff
Price per kWh
EUR 0.28
Standing charge
EUR 178.90/year (EUR 14.91/month)
Estimated annual cost
EUR 1,149.80
Consumption profile
3,500 kWh/yr; sibling Relax24: 27.37 ct/kWh with 24-month guarantee
Price guarantee
12 months
Contract
12 months
Renewable
100%
More details
English support
Yes
Available regions
Nationwide
Smart meter
Not required
Cancellation notice
4 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
27.74 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Households who do not want a price jump in year two

Ostrom

Ostrom SimplyFair12

4.3

Full English app and support, rare in German energy

Get this tariff
Price per kWh
EUR 0.35
Standing charge
EUR 135.60/year (EUR 11.30/month)
Estimated annual cost
EUR 962
Consumption profile
3,500 kWh/yr Berlin, first year (no bonus scheme)
Price guarantee
12 months
Contract
12 months
Renewable
100%
More details
English support
Yes
Available regions
Nationwide
Smart meter
Not required
Cancellation notice
4 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
34.92 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Newcomers who need service in English

Vattenfall

ÖkoStrom12

4.1

100% renewable electricity at budget-level unit rate

Get this tariff
Price per kWh
EUR 0.25
Standing charge
EUR 214.80/year (EUR 17.90/month)
Estimated annual cost
EUR 852.40
Consumption profile
3,500 kWh/yr household, Berlin; first year incl. bonuses
Price guarantee
12 months
Contract
12 months
Renewable
100%
More details
English support
No
Available regions
Nationwide; Vattenfall is Grundversorger in 232 postcodes (Berlin, Hamburg, parts of Bavaria and Baden-Württemberg)
Smart meter
Not required
Cancellation notice
6 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
25.40 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Anyone chasing the lowest first-year bill

View all 31 tariffs

Why is the Grundversorgung so expensive?

The Grundversorgung is the tariff you land in automatically if you move in and choose no supplier. Nobody signs up for it, which is why many movers never notice they are in it. The catalogue flags exactly that on both of its default electricity records.

Default supplyUnit rateCost above switching
Vattenfall Berlin Basis Privatstrom37.93 cents per kWhabout EUR 560 a year
SWM Grundversorgung, München31.17 cents per kWhabout EUR 360 a year
GASAG Erdgas Grundversorgung11.64 cents per kWhabout EUR 220 a year

Electricity at 3,500 kWh a year, gas at 12,000 kWh a year, as of August 2026. The gaps are the distances the catalogue records to the cheapest tariff in the same city.

Leaving costs nothing: all three default tariffs carry no minimum term and two weeks notice. The only advantage the catalogue credits them with is supply from day one without you doing anything.

What makes up a German electricity price?

Every tariff in the catalogue has two price parts: the unit rate per kilowatt-hour consumed, and the standing charge you pay whatever you use. Together they make the annual cost, and both move with the grid area, because your Netzbetreiber's network fee sits inside them.

The parts the catalogue records

Unit rate
24.12 to 37.93 cents per kWh for electricity, 9.52 to 11.64 cents for gas.
Standing charge
About EUR 72 to EUR 217 a year: roughly EUR 8.27 a month at LichtBlick, about EUR 18 a month at Polarstern.
Metering fee
For the meter. E.ON records it as already included in the tariff; other suppliers bill it separately.

A high standing charge hurts small households most. The catalogue names exactly that as Polarstern's drawback: about EUR 18 a month hurts low users.

Why is the advertised annual price a first-year price?

Because many German tariffs bundle a new-customer bonus into the advertised annual figure. Vattenfall stacks up to EUR 320, LichtBlick EUR 319, E.ON EUR 314, eprimo up to EUR 300, and SWM's Berlin listing as much as EUR 508. Those bonuses land once.

Two consequences are in the catalogue. First the clawback: leave inside twelve months and the new-customer bonus is forfeited. Second the step up: E.ON records a second year about 30% higher, LichtBlick about 35% above the first-year headline, and at SWM the Munich Grundversorgung at 31.17 cents per kWh beats the bonus deal's own base rate.

Bonus-free tariffs remove the comparison entirely. Octopus Relax12, Ostrom SimplyFair12, naturstrom, Polarstern, Green Planet Energy, MAINGAU StromGarant and Süwag Naturstrom Clever carry no bonus: what year one costs, year two costs.

How do you switch electricity supplier?

The Netzbetreiber stays the same, the cable stays the same, only the retailer on the bill changes. Two numbers decide it: the term and the notice period. In the catalogue that notice runs from two weeks on the dynamic tariffs and the Grundversorgung to six weeks on most twelve-month tariffs.

Compare only listings that share a consumption profile and a postcode. And take the bonus out before you put two annual figures side by side.

What are green and dynamic tariffs?

Green power does not mean the same thing everywhere in Germany. Vattenfall supplies 100% renewable via Herkunftsnachweise but carries none of the premium seals. LichtBlick, Polarstern and Bürgerwerke carry the Grüner Strom Label, naturstrom holds both Grüner Strom and ok-power, EWS Schönau holds ok-power plus, and eprimo is TÜV Nord certified. If new generating capacity matters to you, the seal is the field to read.

Dynamic tariffs link the unit rate to the EPEX Spot exchange hour by hour, and quarter-hour by quarter-hour at dynamicOctopus. All four in the catalogue are cancellable monthly. The price of that is volatility: the catalogue warns explicitly at Ostrom and Tibber about winter evening price spikes for households that cannot shift their load.

What does gas cost in Germany?

The catalogue prices gas at 12,000 kWh a year. The cheapest unit rates are 9.52 cents per kWh at eprimo and 9.56 cents at Octopus Relax12 Gas, against a national new-customer average of about 9.9 cents. GASAG's Berlin Grundversorgung sits at the top of the range at 11.64 cents, roughly EUR 220 a year above the cheapest Berlin gas contract.

eprimo

eprimoGas PrimaGas

3.9

Among cheapest national gas unit rates (9.52 ct)

Get this tariff
Price per kWh
EUR 0.10
Standing charge
EUR 148.80/year (EUR 12.40/month)
Estimated annual cost
EUR 1,291
Consumption profile
12,000 kWh/yr
Price guarantee
12 months
Contract
12 months
Renewable
0%
More details
English support
No
Available regions
Nationwide
Smart meter
Not required
Cancellation notice
6 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
9.52 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Household gas supply

Octopus Energy

Relax12 Gas

4.2

Bonus-free fair pricing, English support

Get this tariff
Price per kWh
EUR 0.10
Standing charge
EUR 152.40/year (EUR 12.70/month)
Estimated annual cost
EUR 1,299.60
Consumption profile
12,000 kWh/yr
Price guarantee
12 months
Contract
12 months
Renewable
0%
More details
English support
Yes
Available regions
Nationwide
Smart meter
Not required
Cancellation notice
4 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
9.56 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Household gas supply

Vattenfall

Easy12 Gas

3.9

9.78 ct/kWh near the national new-customer average (9.9 ct)

Get this tariff
Price per kWh
EUR 0.10
Standing charge
EUR 190.80/year (EUR 15.90/month)
Estimated annual cost
EUR 1,364
Consumption profile
12,000 kWh/yr gas household
Price guarantee
12 months
Contract
12 months
Renewable
0%
More details
English support
No
Available regions
Nationwide
Smart meter
Not required
Cancellation notice
6 weeks

Prices as of August 2026, verify on the provider site.

Key information

Unit rate
9.78 cents per kWh
Price hold
Price held 12 months
Contract
12-month term

Best for Household gas supply

The catalogue notes explicitly at Vattenfall and Octopus that offset claims are not biogas.

How We Compared These Energy Tariffs

We compared on unit rate, standing charge, price guarantee, term, notice period, sign-up bonus and its clawback, green certification, English-language service, and the grid area the price belongs to. Every annual figure carries its consumption profile, and where a supplier publishes no national list price the field reads n/a rather than an estimate.

Prices come from provider pages and dated German price sources, accessed between March and 20 August 2026, with each record carrying its own access date. Next review: November 2026.

Frequently Asked Questions

What is the difference between a Netzbetreiber and a Stromanbieter?

The Netzbetreiber owns the cables and the meter at your address. You cannot choose it, and its network fee is on every bill. The Stromanbieter sells you the kilowatt-hours and issues the bill. The retailer is the only part you change.

What happens if I choose no supplier when I move in?

The local Grundversorger supplies you automatically. In Berlin that is 37.93 cents per kWh, roughly EUR 560 a year above the cheapest switcher tariff at 3,500 kWh. You can leave at any time on two weeks notice.

Why do two tariffs quote such different annual costs?

Because they often do not assume the same profile. The catalogue holds listings at 3,500 kWh, 3,200 kWh and 2,500 kWh a year, and many first-year figures include a sign-up bonus. Every annual figure on this page states its profile.

Do dynamic tariffs need a smart meter?

For Ostrom SimplyDynamic and dynamicOctopus, yes: they require an intelligent metering system, installed in only 5.5% of households according to the catalogue. Octopus organises and pays for the installation, Tibber bridges it with an EUR 89 Pulse device, and rabot.home flex works off a load profile without one.