Ending default supply and switching to another tariff

What default supply is

Default supply is a kind of safety net. If you need electricity or gas and have no contract of your own, the default supplier (Grundversorger) supplies you. This is usually the local supplier, often the local utility company (Stadtwerke).

The contract comes into being because you take energy. You do not have to fill in a form. That is handy, because you are never left without electricity, but it comes at a price.

How to tell that you are on default supply

On the bill you will often see terms such as “Grundversorgung”, “Allgemeiner Tarif” or “Basisversorgung”. You usually will not find an end of contract or a term. If you are unsure, look at your contract confirmation or ask your provider. We can also see it when you upload your bill.

Why it is often more expensive

Default supply tariffs are generally much more expensive than other tariffs. The default supplier has to take on every household and so cannot work with new customer offers. Many people pay more there for years without knowing it.

How big the difference is for you depends on where you live and how much you use. That is why we compare using your real figures and not average figures.

Typical ways into default supply

These are the cases we see most often:

• You moved in and did not take out a contract.
• Your contract ran out or was cancelled, and no new one followed.
• Your previous provider stopped supplying you.
• A switch did not work out in time.

The notice period: two weeks

A default supply contract can be cancelled with two weeks’ notice (Kündigungsfrist). For electricity this is set out in § 20 paragraph 1 of the Stromgrundversorgungsverordnung (electricity default supply ordinance). There is no minimum term.

The cancellation must be in text form (Textform), so an email is enough. The default supplier must confirm it without delay and tell you the end of the contract. It may not charge a separate fee for the cancellation, even if you move to another provider.

Default supply and replacement supply

There is also replacement supply (Ersatzversorgung). It steps in when you are left without a contract, for example because a provider drops out or a switch does not work out in time. It is also usually more expensive than a tariff of your own. For both cases the same applies: the shorter you stay in it, the better.

How to get out without a gap

You do not have to cancel yourself. The new provider usually takes care of that. All that matters is the right order:

• Choose a tariff and take out the new contract.
• Choose a start date at least two weeks away.
• Record the meter reading on the switch day, ideally with a photo.
• Check the final bill from the default supplier.

What to check before the switch

With every offer, look at the term (Laufzeit), the notice period and the price guarantee (Preisgarantie). A tariff with a bonus is cheaper in the first year and can become more expensive afterwards. There is more in our guide on term, notice period and price guarantee.

If you have only just moved in, the article on the provider when moving home also helps. It explains how to avoid default supply from the start.