You move into your German flat, flip the light switch, and it works. Great. What you do not realise is that you are now in a contract you never signed, paying one of the highest electricity rates available, and the meter on the wall is already counting your money. The lights being on is not the same as the energy being sorted.
German energy is a market you opt into, not a service that just exists. Power flows from day one so you are never in the dark, but the default is expensive by design, and the savings from doing two simple things, reading your meter and switching tariff, are large enough to matter to anyone's budget.
Why you are already in a contract
The moment you move in and use power, you enter the Grundversorgung, the basic supply from the local incumbent provider. This is deliberate consumer protection: nobody is ever left without electricity because they have not arranged a contract yet.
The catch is price. Grundversorgung tariffs are typically the most expensive in the market, because they are the safety-net default, not a competitive offer. You are paying a premium for the convenience of automatic supply.
So step one is awareness: the lights working does not mean you have a good deal. It means you have the default deal, and you should treat it as temporary.
Read your meter on day one
Before anything else, read the electricity meter on move-in day. Note two things: the meter reading (the number on the display) and the meter ID / number (Zählernummer, printed on the meter).
This matters for two reasons. The reading marks where your consumption starts, so you are not billed for the previous tenant's use. The meter ID is what you need to register with a provider or switch tariff. Photograph the meter so you have both, with the date.
If there is a handover protocol (Übergabeprotokoll) with the landlord, the meter reading goes on it. If not, record it yourself.
Electricity vs gas: who bills you
Electricity (Strom) is almost always your own separate contract. You arrange it, you pay the provider directly.
Gas (Gas) depends on your heating setup:
- Central building heating (the boiler serves the whole building): heating gas is usually inside your Nebenkosten, the service charges billed by your landlord, so you do not sign a gas contract.
- Your own gas heating (a Gastherme in your flat): you sign a separate gas contract yourself, exactly like electricity, with its own meter and provider.
Work out which you have before assuming. Signing a gas contract you do not need, or failing to sign one you do, both cause problems. Ask the landlord or check whether there is a gas meter assigned to your flat.
Switching to a cheaper tariff
Switching providers is normal, encouraged, and easy in Germany. You are free to leave Grundversorgung once settled.
The process: use a comparison site, filter by your postcode and estimated annual usage (kWh), pick a tariff, and sign up with your address and meter ID. The new provider coordinates the switch with the old one, and your power never cuts out during the change.
What to check before signing:
- Contract term and notice period
- Price guarantee period (how long the rate is fixed)
- New-customer bonus: many cheap-looking tariffs include a one-off bonus that only applies in year one, after which the price jumps, so compare the second-year price too
- Whether it is green energy (Ökostrom) if that matters to you
The Abschlag and annual reconciliation
German energy billing is estimate-then-settle. You pay a fixed monthly amount, the Abschlag, based on your estimated annual usage. This keeps your monthly cost predictable.
Once a year, the provider takes your actual meter reading and reconciles:
- Used less than estimated, you get a refund (Guthaben)
- Used more, you owe the difference (Nachzahlung)
Submit accurate meter readings when asked (often annually, sometimes self-reported), because a wrong estimate means either a nasty year-end bill or your money sitting with the provider interest-free all year. After reconciliation, the monthly Abschlag is adjusted for the year ahead.
A clean move-in energy routine
Put together, the energy setup is a short sequence done in the first week.
Read and photograph the meter on day one. Identify whether gas is yours or inside Nebenkosten. Register with the Grundversorgung provider so you are correctly accounted for, then run a comparison and switch to a competitive tariff, checking the year-two price. Set a reminder to submit your meter reading annually so the reconciliation is fair. Pair this with sorting internet, the other contract every new flat needs.
What to do this week
- Read and photograph your electricity meter (number and meter ID) on move-in day, before using much power.
- Find out whether your heating gas is your own contract or billed inside Nebenkosten, so you sign exactly the contracts you need.
- Compare tariffs and switch off the default Grundversorgung, checking the second-year price, not just the bonus-inflated first year.
