According to a recent study by Kreutzer Consulting and Verivox, the German energy market experienced a significant increase in the number of providers in the first half of 2024. Both the gas and electricity sectors saw a substantial rise in the number of providers per postal code compared to the previous year. This trend indicates a growing level of competition, which can have a positive impact on consumers.
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Study reveals significant increase in competitiveness in energy market
The study reveals that there was a consistent and significant increase in competition intensity in 2023 following the energy price crisis. In the first half of 2024, the number of providers has stabilized at a consistently high level with a slight increase. However, the number of providers still remains lower than pre-energy price crisis levels.
Energy price crisis leads to market consolidation and reduced competition
The energy price crisis caused many market exits due to insolvencies and business closures. At the same time, municipal utilities have questioned their regional commitment and reduced their scope of action. This leads to market consolidation and an increasing concentration of competition among fewer providers.
Increased competition leads to higher bonuses for energy consumers
The increased competition in the German energy market has led to an impact on the bonuses offered to consumers. In the first half of 2024, approximately 80 percent of completed electricity tariffs included a bonus. Furthermore, the bonuses granted are higher on average compared to those during the energy price crisis. One-third of private customer switchers even secured a tariff with a total bonus ranging from 200 to 300 euros.
Insights into customer switching behavior on the German energy market
The Wechslerstudie Energie, conducted by Kreutzer Consulting and Verivox, provides comprehensive insights into the switching behavior of private and commercial customers in the German energy market. This biannual study analyzes demographic factors and tariff preferences of switchers, aiming to assist energy providers in developing their sales strategies. Additionally, the study presents easily understandable summaries of relevant market developments.
Growing number of energy providers benefits consumers’ competitiveness
The increase in the number of providers in the German energy market indicates a growing level of competition, which benefits consumers. With a larger selection of providers, there is also a higher likelihood of finding a cost-effective tariff with attractive bonuses. The Wechslerstudie Energie provides valuable insights into consumer switching behavior, aiding energy suppliers in the development of their sales strategies.
