Fixed price or dynamic (hourly) electricity contract in Germany: which is right for me?
A fixed price stays the same for an agreed period. A dynamic price follows the wholesale market hour by hour, so it can be cheaper when you shift your use, and more expensive at peak times.
📜 The rules in Germany
Fixed and dynamic contracts
Since 1 January 2025 every electricity supplier must offer a dynamic tariff to customers with a smart meter (intelligentes Messsystem). Suppliers with more than 200,000 customers must also offer a fixed-price contract with a binding term of at least 12 months.
- With a dynamic tariff the energy price follows the exchange price: cheap when exchange prices are low, more expensive when they rise. You need a smart meter; ask your metering operator or supplier. (bundesnetzagentur.de)
- Before you sign, the supplier must explain the costs, advantages, disadvantages and risks of a dynamic tariff and give you a short, clear summary of the main contract terms. (gesetze-im-internet.de)
- Switching to a dynamic tariff gives no special right to cancel your current contract: the normal notice periods apply. (bundesnetzagentur.de)
🪜 Step by step
- Look at how you use energyA dynamic price suits people who can move use to cheap hours, for example with an electric car, a heat pump or a timer. It needs a smart meter.
- Check what is on offerSee below what the rules in Germany say about fixed-price and dynamic contracts and who has to offer them.
- Read the risks and the termsBefore you sign, the supplier must explain the costs and risks of a dynamic contract. Check the notice period and any exit fee.
- Review after a few monthsCompare your bills with what a fixed price would have cost. You can switch again under your contract terms.
📇 Who to contact
❓ Questions
Is a dynamic contract cheaper?
Only if you use a lot of power when prices are low. At peak times it can cost much more than a fixed price.
Do I need a smart meter?
Yes. Hourly prices need a meter that records your use per hour or per quarter hour.
Can a fixed price still go up?
Normally not during the fixed period, but taxes and network charges can change. The rules for Germany are on this page.
📎 Sources
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