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ENERGY

German minister wants people to ‘annoy Putin’ by cutting gas use

German economy minister Robert Habeck is urging compatriots to take steps to save on energy because it "annoys Putin", as the country aims to reduce its dependence on Russian gas over the Ukraine war.

Minister for Economic Affairs and Climate Action Robert Habeck speaks in Berlin on Wednesday.
Minister for Economic Affairs and Climate Action Robert Habeck speaking in Berlin. Photo: picture alliance/dpa | Bernd von Jutrczenka

 Habeck said in an interview with the Funke newspaper group published on Friday that people can take “very simple” measures to reduce consumption.

“As a general rule, I would say that we can always save 10 percent” on energy, he said.

He suggested that people can make savings by closing curtains to avoid heat loss at night and lowering their temperature settings by one degree.

“I urge each and everyone to save on energy right now,” said Habeck, a Green Party politician who is also Germany’s climate minister.

READ ALSO: Why Germany has urged households and businesses to cut back on gas

“If over Easter we can ride a bike or take the train, that’s good, too. It spares your pocketbook and annoys Putin,” Habeck said.

Germany has resisted calls within the European Union to ban Russian gas, with leading economic institutes warning that it would send the country into a sharp recession.

Germany has reduced its share of Russian gas imports from 55 percent before the war to 40 percent.

Habeck said last week that it would likely take until mid-2024 for Europe’s top economy to wean itself off Russian deliveries.

READ ALSO: Germany activates emergency gas plan to secure supply

German officials have also triggered an emergency plan in anticipation of a gas shortage, which could result in gas rationing among households and businesses.

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PRACTICAL TIPS

How German households can save on their electricity bills

Customers can save a high three-digit sum on their household electricity costs, according to calculations done by German price comparison portals. Here's why you may want to switch your tariff.

How German households can save on their electricity bills

German households are overpaying for electricity by billions of euros each year, according to calculations carried out on the Verivox price comparison portal.

This is because nearly a quarter of households in Germany purchase electricity via the most expensive tariff group from their local supplier – the so-called ‘basic supply’, or Grundversorgung in German.

But in Germany, customers have energy tariff options, and saving hundreds on your energy bill can sometimes be as simple as checking your current tariff online and switching to a cheaper one in a matter of minutes.

Based on approximately ten million households consuming electricity from the basic supply, Verivox calculates that Germans are overpaying by about €5.5 billion annually. That’s because the average difference between basic supply rates and the cheapest local energy rates currently amounts to 20 cents per kilowatt hour (kWh).

What is the ‘basic supply’ for household energy?

Household electricity in Germany is purchased through different tariffs (Stromtarifs). Through these various tariffs, local energy companies offer different prices for electricity, depending on customer contracts.

The basic supply tariff for electricity can be thought of as the default. When a new house is connected to the energy grid, for example, its electricity will be provided via the basic supply unless the homeowner chooses another tariff option.

READ ALSO: How to change electricity and gas providers in Germany

The basic supply is intended to ensure that everyone has access to electricity, even if they haven’t shopped around for an energy provider on their own. It can also be advantageous in the short term because it can be cancelled at any time, as opposed to other tariffs which typically come with longer contracts.

But the basic supply is comparatively expensive. According to Verivox, basic supply electricity currently goes for an average of 44.36 cents per kilowatt hour (kWh), whereas the cheapest available rates on average come to 24.7 cents/kWh across Germany.

How much can you save?

At current rates, you can expect to save about 44 percent on your electricity bill if you switch from basic supply to the cheapest option with a price guarantee. 

That amounts to significant savings, considering that annual electricity costs regularly come to a few thousand euros in German households.

The Hamburger Abendblatt reported that a three-person household consuming 4,000 kWh would save an average of €786.

These prices will vary from provider to provider and from region to region. 

Keep in mind that choosing other tariff options often comes with some additional fees. Still, in many cases taking a look at different electricity tariff options can save households some money.

Also, switching tariffs is different from switching your energy provider. If you currently get basic supply electricity from Vattenfall, for example, you could potentially switch to a different tariff option while maintaining your business with them. But if you are between contracts, or currently on basic supply, you could also consider switching providers.

In this case, a comparison portal like Check24 can be useful to get an idea of which companies offer the best rates.

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