How are the tariffs calculated

Calculate the electricity price and find cheap offers!

  • Save up to 800 euros

    That's how we calculated

    Place of residence: Barsbüttel, 22885
    Annual consumption: 5,300 kWh

    Cheapest tariff: E.ON Energie, E.ON Strom Extra, costs in the first year: 1,141.08 euros
    Basic service tariff: e.on Grundv. Electricity, costs: 1,952.29 euros

    (According to the Federal Network Agency, over a quarter of German households receive the local basic service tariff. You can switch anytime.)

    Savings: 811.21 euros

    (As of: November 16, 2020)

  • Over 1,000 electricity providers

  • Over 15,000 tariffs in comparison

That's how we calculated

Place of residence: Barsbüttel, 22885
Annual consumption: 5,300 kWh

Cheapest tariff: E.ON Energie, E.ON Strom Extra, costs in the first year: 1,141.08 euros
Basic service tariff: e.on Grundv. Electricity, costs: 1,952.29 euros

(According to the Federal Network Agency, over a quarter of German households receive the local basic service tariff. You can switch anytime.)

Savings: 811.21 euros
(As of: November 16, 2020)

Double protection: Verivox bonus promise and nowhere cheaper guarantee

The Verivox bonus promise guarantees that you will receive all promised switch premiums and bonuses after successfully signing a new electricity or gas contract - that's a promise! And that with the guaranteed lowest price - with the Verivox nowhere cheaper guarantee.

  1. How to calculate the price of electricity
  2. Basic fee and labor price
  3. Advance payments are offset against the electricity price
  4. Electricity costs: How we calculate the electricity prices for comparing the offers

How to calculate the price of electricity

Since the liberalization of the electricity market in 1998, consumers have been able to choose their electricity provider themselves. However, so far only a small proportion of electricity customers have switched providers. Around a third of households are no longer supplied by the local basic supplier. One reason for this is that many consumers do not understand how utilities calculate the price of electricity. Electricity bills and electricity consumption are bursting with numbers that are not easily understandable. As a result of the amendment to the Energy Industry Act in 2011, new obligations for the preparation of electricity bills were imposed on the suppliers, which give hope for a better understanding. In view of the large amount of information that must now be included on the statements, the clear presentation is also a real challenge. Here are a few tips that will make it easier to understand how providers calculate the electricity price (in kWh).

Basic fee and labor price

In most cases, an electricity tariff consists of two components. The basic fee is always due. Among other things, it covers the cost of the electricity meter. Depending on the provider, the basic fee is shown as a monthly or annual cost. In addition, there is the energy price, which is usually given in cents per kWh. When the utility calculates the electricity price, the energy price is multiplied by the number of kilowatt hours (electricity consumption) used and the basic fee is added. As a rule, taxes and charges, which make up almost half of the total electricity price, are already included in this electricity price calculation. If the amount is shown as net, VAT is added.

Advance payments are offset against the electricity price

A common mistake when calculating the electricity price is that the monthly installments correspond to the actual electricity price. However, the payments on account are only a preliminary estimate, which is calculated on the final invoice with the actual electricity consumption in kWh. If the payments on account are higher than the costs, the customer receives a refund. If the actual electricity consumption exceeds the payments on account, an additional payment must be made. This calculation can also be found on the electricity bill.

Electricity costs: How we calculate the electricity prices for comparing the offers

At Verivox, the electricity offers available on site can be compared quickly and easily. The most important criterion is the electricity price, which is calculated for the first year of delivery. To do this, the number of kilowatt hours (consumption) entered by the users is multiplied by the energy price and the basic fee is added. In addition, new customer discounts and bonus payments are deducted. In most cases, these payments are only due in the first year of the contract. If you want to secure permanently low electricity prices and electricity costs, you should therefore regularly have the current electricity prices calculated and check whether there are cheaper offers. Basically, every household benefits from the consumption calculator regardless of the annual consumption: The saving of electricity costs and the change of the electricity provider to a cheaper electricity tariff saves every household a lot of money per year with the same electricity consumption.

Secure your electricity tariff now

  • Save up to 800 euros

    That's how we calculated

    Place of residence: Barsbüttel, 22885
    Annual consumption: 5,300 kWh

    Cheapest tariff: E.ON Energie, E.ON Strom Extra, costs in the first year: 1,141.08 euros
    Basic service tariff: e.on Grundv. Electricity, costs: 1,952.29 euros

    (According to the Federal Network Agency, over a quarter of German households receive the local basic service tariff. You can switch anytime.)

    Savings: 811.21 euros

    (As of: November 16, 2020)

  • Over 1,000 electricity providers

  • Over 15,000 tariffs in comparison

  • 1 kilowatt hour (kWh) of electricity costs just under 30 cents on average. However, this is only a rough estimate. Important to note: Most electricity suppliers indicate a “working price” in cents per kilowatt hour (kWh). In addition, there is a fixed monthly basic price that is calculated regardless of consumption.

    If you want to determine what 1 kilowatt hour (kWh) costs for an electricity supplier, you have to take this basic price into account. The annual electricity consumption is multiplied by the working price and the result is added to the annual basic price. The result is then divided by the annual electricity consumption in kWh. The result is the effective costs per 1 kilowatt hour (kWh) of electricity.

  • Most electricity tariffs have a uniform price per kilowatt hour that is independent of the time of day. Most electricity meters are designed for this. There are electricity tariffs at which the electricity consumed at night is between 10 and 20 percent cheaper. A double tariff meter is required for this. This is particularly worthwhile for consumers with night storage heaters.

  • Those who have never changed will be supplied by what is known as the basic supplier. This is the local power company, for example the municipal utility.

    If you have never changed the tariff with this electricity supplier, you will be supplied on the terms of the basic supply.
    The basic supply can be terminated at short notice - the new electricity provider will take care of that for you.
  • Most electricity suppliers offer new customers various bonuses that are paid out during the first year of the contract. If you want to compare the total costs in the first year of the contract, you should therefore include the bonus in the electricity comparison. In order to determine the costs in the second year of the contract, the bonus can be deducted.

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