January 15, 2023
As of March 1, 2023, EON increased our electricity prices by 68% — from 0.23 € to 0.408 € per kWh. An analysis of options and what we did about it.
It finally hit us too — as of March 1, 2023, EON significantly increased our electricity prices. With an annual consumption of about 5,000 kWh, we were now expected to pay 2,152.17 € instead of 1,280.67 € per year. That’s an increase of 68%, from 0.23 € to 0.408 € per kWh. The energy price cap saves us about 40 € per year at these prices, since the new price is only slightly above the 40 cent threshold.
What options are there to react?
The basic supply tariff (Grundversorgungstarif) offers a way to buy additional time and then potentially switch to a cheaper tariff later in the year. The basic supply tariff may not be price-stable and can be increased at short notice, but the energy price cap of max. 40 cents on 80% of the previous year’s consumption also applies here. So you won’t pay more than the new EON price. The notice period for the basic supply tariff is only 14 days, allowing a quick switch to another provider at any time.
My basic supply provider is also EON, and the current tariff costs 0.33 € per kWh. The base fee and meter charges are slightly higher.
Prices on comparison portals are still somewhat higher than EON’s new tariff, but they have already dropped significantly compared to 2 months ago, when prices were well above 0.60 € per kWh. Currently, the cheapest tariff is around 0.42 €.
The details
Our consumption last year was 5,000 kWh.
| Provider | € Price per kWh | Base fee (incl. meter/year) | Total cost |
|---|---|---|---|
| Previous EON tariff | 0.23€ | 112.17€ | 1,280.67€ |
| New EON tariff | 0.41€ | 112.17€ | 2,152.17€ |
| Basic supply tariff | 0.33€ | 239.18€ | 1,906.98€ |
The basic supply tariff is currently cheaper, but still 626.31 € more expensive per year than my previous tariff.
Conclusion: Cancellation and hope for better conditions
I’ve now cancelled my EON contract, since I won’t pay more anyway thanks to the energy price cap, and we already put a balcony power plant into operation in October. My assumption is that we’ll consume at least 20% less electricity. If tariffs continue to fall over the course of the year, I’ll definitely sign a longer-term contract with a guaranteed price, hoping for significantly better conditions. Until then, the energy price cap protects me.
It’s definitely worth checking all options. In my case, playing for time makes sense since no higher costs will be incurred. But that may not always be the case.
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