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Greece invites Germans to migrate south to avoid heating price shock

The Greek tourism ministry has said that German pensioners are welcome to stay in the Mediterranean country over winter so as to avoid the surging cost of heating at home.

Greece invites Germans to migrate south to avoid heating price shock
A view of the harbour of Chania on Crete in May. Photo: dpa | Socrates Baltagiannis

“For autumn and winter, it would be a great pleasure for us Greeks to welcome German pensioners who want to experience a ‘Mediterranean winter’ with Greek hospitality, mild weather and quality services,” Greek tourism minister Vasilis Kikilias told Bild newspaper on Thursday.

With heating bills set to triple or go even higher next year due to gas shortages caused by the economic stand off between the West and Russia over the latter’s invasion of Ukraine, ever more Germans face failing into energy poverty.

The head of Germany’s Federal Network Agency warned this week that households could face an increase of several thousand euros in their annual heating bill.

But the Greek government is promising that Germans would be well received in a country which is a firm favourite among German holidaymakers during the summer season.

“We will be here waiting for you,” Kikilias assured German retirees.

With the cost of living in Greece significantly lower than in Germany, pensioners could also save on their weekly shopping bill if they were to migrate south for the winter.

Panagiotis Simandirakis, mayor of Chania on the island of Crete joined in on the appeal, telling the tabloid that “no Germans will freeze in Greece.”

He claimed that his island had the best climate in the whole of Europe and that there is no need to heat homes in the winter due to the mild temperatures.

Whether the proposal offers a genuine solution to the energy crisis that is looming over Germany remains to be seen. The Greek government has not offered any financial incentives other than the lower cost of living which already exists in the poorer EU country.

Any pensioners planning to spend the winter in southern Europe would have to first rent out their own property to make the plan pay. This is a risk that Germans struggling to pay their bills might be unwilling to take.

READ ALSO: German energy regulator warns gas prices could triple

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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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