Low gas storage levels, low wind output, and a faster-than-expected economic recovery resulted in record-high wholesale market prices for electricity and gas.
Naturally, this led to higher energy bills for the consumer as many energy providers had to increase their prices — including here at Ostrom, where we sell our electricity at cost price without any markups on consumption.
Unlike Ostrom, many providers lure customers in with long-term price guarantees. But as we’ve seen, most of these guarantees can’t hold up to these record-high prices because the providers didn’t buy the energy at these fixed prices in the first place. These providers must then either bear the costs or massively increase prices for consumers, which can result in high churn or, at times, bankruptcy.
First of all, you don’t need to worry about the power going out. You will always have energy!
The local default supplier will jump in if your existing provider goes bust. In Germany, this would be one of the Big 3 — e.On, Vattenfall, EnBW — or the municipal supplier (”Stadtwerk”). These default suppliers guarantee a seamless transition, but it could cost you as their default tariffs are usually the most expensive.
The best thing you can do is send an additional cancellation request to your bankrupted provider, and they will create a final bill. If there are open payments, you will still be required to pay these, but you will send the money to a bank account administered by the insolvency trustee or administrator rather than the provider’s usual account. If the provider owes you any money, such as bonuses, you should submit a claim to the insolvency trustee.
Once you’ve sent the cancellation request, it’s a good idea to look for a new, competitive provider so you don’t get stuck with an expensive default tariff.
At Ostrom, we offer just one fair tariff for all — no tricks, no tiers. We’re digital-first (no post or fax!) and completely transparent, so you’ll always know exactly what you’re paying for. Ostrom is also Germany’s best-rated utility, with a 4.9 out of 5 stars on Trustpilot, so you know you can trust us.
Make the switch to Ostrom today!
Photos from Unsplash by Kelly Sikkema Jon Moore
Starting in the second half of 2022, Ostrom will purchase green power directly from Hannover-based energy service provider GETEC ENERGIE via PPAs.
Prices are still rising. We explain why we have to adjust our prices as well.
Due to increased energy prices, more and more electricity providers are going bankrupt. This post covers what you need to know as a customer if this happens to you, and how to ensure you don't end up overpaying for electricity.