With electricity and gas – can you save money by switching providers?

Prices for electricity and gas on the trade exchanges have risen explosively in the past year. The suppliers have passed on these increases to the customers. Now they often have to decide whether the last financial reserves will be used for heating, food or rent. High debts are the result – and sometimes the beginning of a downward spiral. In the meantime, the situation has eased somewhat – just not on the Austrian stock market. Although prices on the wholesale market have reached mid-2021 levels, there is no trace of this on the invoices and regulations. But on the contrary! We know why.

Here’s the overview
Energy suppliers are obliged to pass on their current rates to E-Control. If you look around for a new contract for electricity and gas, you will notice that these are well below last year’s prices. Providers can buy cheaper electricity and gas again. Absurd side effect: New customers of energy suppliers currently pay significantly less than customers who have remained loyal to their supplier despite price increases. So is it worth switching?

Experts are sure
Johannes Mayer, head of the economics department at E-Control: “Yes, it pays off. The only question that remains is which one to choose. For a fixed price including new customer discount or for a flexible rate that adjusts monthly to the wholesale prices. In both cases you can now save money in the short term.” According to Mayer, savings of up to 1000 euros are possible in a family household.

It’s important to keep that in mind
The expert advises waiting another two to three weeks and to pay attention to any deadlines. Since prices could fall even further, the savings potential would be even greater. However, if you have a contractual obligation, you will have to be patient. Stefan Spiegelhofer of the comparison portal “Durchblicker” sees it the same way: “If you are not saving too much by switching at the moment, you should wait a little longer, observe the market and continue to compare electricity and gas rates.”

However, currently most electricity and gas rates are offered with a commitment. However, there are also rates that are not binding. These are usually float rates, where the price fluctuates on a monthly basis. Spiegelhofer: “With a float tariff, you first benefit from falling electricity and gas prices. In addition, you are partially protected by the electricity price brake (up to 40 cents/kWh) if prices rise again as strongly as last year. Nevertheless, caution is advised when choosing a float rate: It is important to enter into a float rate without obligation. If electricity and gas prices rise, you can switch to a fixed rate in good time.”

Not everyone gets out now
However, if you have a contractual obligation, you will have to be patient. In Vienna, this largely applies to customers of Wien Energie who decided last year to participate in the loyalty promotion including price protection until August and are therefore now committing. But the experts agree on this too: if you count the many free energy days (up to 70) as a discount, the average price is significantly lower. It is also important to provide insight into the security of supply for yourself. Many small providers withdrew from the market last year and customers canceled.

This is also evident from the number of new customers of Wien Energie and other major suppliers. Through the bank, they could look forward to four to five-digit customer growth. A spokeswoman for Wien Energie: “Wien Energie mainly offers tariffs with a price guarantee to offer customers stability and predictability. Anyone who considers safety of paramount importance will certainly be in the right place with these products. Most people don’t want to worry about their energy contract all the time. While those who use a float rate can quickly benefit from market developments, they must be careful if prices rise again.”