Energy prices 2027: what rises on 1 January

Households in Germany are receiving the first letters about their energy prices 2027, and most of the news is unwelcome. From 1 January, several state-regulated parts of the electricity bill go up, gas network fees rise, and many suppliers are raising their own tariffs because they have to buy gas at much higher wholesale prices than a year ago. Large regional suppliers such as EnBW in Baden-Württemberg and EWE in northwestern Germany have already published their new prices, and basic suppliers across the country have until 20 November to announce theirs.

How much more a household will pay depends on where it lives, which network it is connected to and what kind of contract it has. For gas customers the jump can be several hundred euros a year, while for electricity the changes are smaller and in some regions even slightly positive.

Electricity levies jump by almost 23 percent

The most visible change on the electricity side concerns three surcharges, known as Umlagen, that every household in Germany pays on each kilowatt hour (kWh), no matter which supplier it uses. Together they will rise from 2.946 to 3.621 cents per kWh in 2027, an increase of 22.9 percent, according to an evaluation of the transmission system operators' new rates by the municipal utilities network ASEW, as reported by echo24. The surcharge for special network use, which finances discounts for large industrial consumers, climbs by about 30 percent to 2.027 cents. The offshore network levy, which pays for connecting wind farms at sea, rises to 1.143 cents and passes the one-cent mark for the first time. The levy for combined heat and power plants stays almost unchanged.

The percentage sounds dramatic, but the effect on the total bill is modest. If suppliers pass the increase on in full, a household using 3,500 kWh a year pays roughly 28 euros more including VAT, echo24 calculated. The consumer site inside digital, citing an analysis by the data firm Ene't for Finanztip, puts the extra cost at around 24 euros for a three-person household using 3,000 kWh.

Network fees (Netzentgelte), the charges for using the local power grid, also change on 1 January. On average they rise by 1.9 percent nationwide, from 428 to 436 euros a year for a model household, according to a Verivox calculation reported by dpa. One reason is that the federal subsidy for transmission network costs shrinks from 6.5 billion euros in 2026 to about 5.5 billion euros in 2027. Grid operators have warned that the final fees could be higher if this funding is not legally secured by 7 December.

Why energy prices 2027 differ so much by region

Behind the national average lies a patchwork. In the Ene't analysis cited by inside digital, network fees for the model household rise by about 30 euros in Saarland, while households in North Rhine-Westphalia save around 9 euros and those in Saxony about 18 euros. Individual network operators show even bigger swings, from increases of more than 30 percent in one Bavarian network to cuts of around 20 percent in a town in Mecklenburg-Western Pomerania. Berlin is among the areas where network fees rise faster than the national average, according to Verivox figures quoted by several outlets.

For gas, Verivox expects network fees to rise by about 3 percent on average. Its energy expert Thorsten Storck explained to dpa that gas consumption in Germany has fallen sharply since Russian pipeline deliveries stopped in 2022, so the same network costs are now spread over fewer kilowatt hours. Network fees make up about a quarter of an electricity bill and about a fifth of a household gas bill, according to the energy industry association BDEW.

Gas suppliers raise energy prices 2027 the most

The biggest increases come from the suppliers' own procurement costs. Many utilities had supplied existing customers with gas bought long in advance at lower prices, and now have to buy for 2027 at the much higher levels seen since the start of the war involving Iran. EnBW says gas prices on the exchange have risen by about 150 percent since the beginning of the year, and EWE reports a similar jump in forward prices compared with October 2025. Verivox expects gas tariffs to rise by 10 to 20 percent at the turn of the year, depending on the tariff, which for a house using 20,000 kWh means roughly 250 to 500 euros more per year.

EnBW announced on 5 November that it will raise prices in its basic and replacement supply (Grund- und Ersatzversorgung) by 8.4 percent for gas and 3.3 percent for electricity. For its model gas customer using 20,000 kWh, the monthly bill rises by about 18 euros to roughly 231 euros, and a two to three person household using 2,900 kWh of electricity pays about 3.40 euros more per month. Together that comes to just under 256 euros more per year, Dr. Web calculated. EWE raises its basic supply gas price from 11.01 to 12.90 cents per kWh and its electricity price from 29.63 to 34.58 cents, which it says adds about 300 euros a year for a household using 15,000 kWh of gas and about 128 euros for one using 2,500 kWh of electricity.

Other utilities are following. An overview by the portal Energiemarie lists increases announced by swb in Bremen, the municipal utilities in Münster and Passau and several smaller suppliers, and reports that E.ON and Vattenfall have also written to customers about price changes for 1 January without publishing figures yet. Our earlier report on how the gas price topped 100 euros explains what is driving the wholesale market.

Deadlines and the right to cancel

Suppliers cannot raise prices without warning. In the Grundversorgung, the default tariff that applies when a household has never chosen a supplier, a price change must be announced publicly and by letter at least six weeks in advance. For changes on 1 January, that means by 20 November. Customers on any other contract (Sondervertrag) must be informed directly at least one month ahead, so by 1 December for a January increase.

Anyone who receives a price increase letter has a special termination right (Sonderkündigungsrecht) and can cancel without notice, effective on the day the new price would apply. This also covers increases caused by higher network fees or levies; the main exception is a change that only passes on a different VAT rate. The cancellation must be made in text form, for example by letter or e-mail, and should reach the supplier before 1 January. Customers in the Grundversorgung can also leave at any time with two weeks' notice. Consumer guides recommend signing a new contract first, or letting the new supplier handle the cancellation, so that a household does not slip into the often more expensive replacement supply.

What energy prices 2027 mean for expats

Start with your last annual bill. It shows whether you are in the Grundversorgung or on a special contract, who your network operator is and how much you consumed. Compare the price letter with that bill, then check what other suppliers charge for a full year at your consumption, looking at the total cost rather than one-off bonuses. inside digital suggests that households whose network fees rise should consider locking in a tariff with a price guarantee now, while those in areas with falling fees may get better offers in January or February. Our guide to energy providers and options explains how switching works in Germany.

Tenants with central heating usually do not receive a gas letter themselves, because the landlord buys the gas and passes the cost on through the Nebenkosten, the monthly service charge advance. Higher energy prices 2027 will therefore show up later in the annual statement, and putting some money aside or agreeing a higher monthly advance can soften the back payment.

One possible relief remains open. The coalition has promised to cut the electricity tax (Stromsteuer) for all households from 2.05 cents to the EU minimum, which would save a household using 3,500 kWh around 80 euros a year according to echo24 and more than offset the higher levies. Finance Minister Lars Klingbeil has said there is no money for it in the current budget, and no law has been introduced, so households should not count on it for January.