Clarize Marais & Niklas Hirmke
The energy market is finally starting to stabilize at lower prices after a turbulent year of record highs. So staying true to our promise, we’re decreasing our prices and passing the savings directly on to all our customers. We are able to decrease the unit rate by 4ct/kwh gross which translates into annual savings of 100€ per year for the average German household.
The chart above shows the all-time high wholesale electricity costs we were dealing with at the end of 2021 and throughout 2022. Prices began to fall in October due to several factors: 30% savings in gas usage by consumers and industry, a record mild October weather, natural gas storage is filled up to 100% capacity and further new installations of renewables.
We understand that this has been a very hard year, not just in terms of energy costs, but also the impact caused by the Russia-Ukraine war, inflation, and the subsequent economic downturn leading to many people losing their jobs. We empathize deeply with all those affected and sincerely hope that a lower electricity bill will relieve part of the strain.
Unlike other providers who only lower their prices for new customers while trapping existing customers at a higher Preisgarantie, Ostrom stays true to its philosophy and always lowers the price for everyone — maintaining one fair, flexible tariff for all.
We continue to sell 100% green electricity at the wholesale market price and only charge a monthly basic fee of 6€ to cover our expenses, which means we don’t profit from rising energy prices or when our customers are consuming more electricity at home. And because our interests align perfectly with yours, we want you to save energy and pay the lowest price possible — thereby protecting the planet and your savings!
At Ostrom, we want to insulate our customers from rapid price increases as much as possible. So if wholesale prices suddenly spike, as they did in 2022, we analyze and forecast everything that might impact the market before we even consider passing on a higher cost to our customers. That’s why we decided not to directly pass on the peak March and August prices to protect our customers from the worst of the crisis — even if that means incurring some losses during these months — in an effort to protect our customers.
From our analysis and forecasts, we hope that this is just the beginning of several price reductions. Month by month, we analyze how the electricity market is developing. In case the prices remain stable at a lower level, we will pass on the reduced costs.
The electricity price brake was actually supposed to come in effect in January 2023. At the end of November, it was announced that it would not start until March 2023. But, for the months of January and February 2023, there will also be the capped price for electricity retroactively in March.
For the so-called base consumption of electricity, there will be a price cap. The base consumption will be 80% of your previous year's consumption. The maximum price up to this threshold of your electricity consumption will be 40 ct/kWh. Only the electricity consumption above this threshold will be subject to the contractually agreed (higher) price.
Of course, we will comply with all legal requirements of the federal government and implement them accordingly. Furthermore, we will inform you as a customer as soon as the electricity price brake was finalized.
As prices traditionally cool after winter, we will pass those savings on to our customers in 2023 once again! By staying flexible with a transparent and fair energy plan, Ostrom customers are getting the best deal possible. Most providers trap customers into 12-24 month contracts with a Preisgarantie, but in the long run, this ends up being more expensive than a flexible tariff (find out why in this blog post here).
No matter the market price of the moment, our incredible operations team remains at your service and gives their best every day to make your life easier. We appreciate all the feedback, suggestions & support–which is reflected in our 4.9 Trustpilot review score–making Ostrom the best-rated energy provider in Germany for customer satisfaction. We also received a 100/100 score from Deutschland Test, making us the #1 ranked energy provider in Germany on two platforms.
Our promise to everyone: we will keep working hard to continue giving you fair prices and the best customer experience
A smart meter is a type of energy meter that is used to measure the consumption of electric, gas, or water in a building or home. Unlike traditional meters, which require a technician to physically read the meter, smart meters can communicate their readings remotely to the utility company using a wireless connection.
When it comes to choosing an electricity provider in Germany, there are several factors to consider in order to find the best fit for your needs.