Gas heating in Germany

What makes up the price of gas

Less than half of the bill is actually gas. Everything else is the network, taxes and charges, which the supplier has no control over. Understanding the breakdown is useful: it explains why changing your tariff yields savings, but not dramatically.

A non-obvious detail. The mere fact of withdrawing from the basic supply reduces the concession fee from 0.22–0.40 to 0.03 ct/kWh. On this component alone, the savings reach €88 a year with a consumption of 20’000 kWh — in addition to the difference in the purchase price.

What changed in 2025–2026

What it all boils down to. Scrapping the gas storage levy saved €69, but the increase in grid tariffs and the CO2 price wiped out those savings entirely. The regulated part of the bill in 2026 increased by roughly €30 a year, with the total amount also rising due to higher gas prices on the exchange.

For 2027, the government has introduced a bill keeping the CO2 price corridor at €55–65 per tonne; as of August 2026, it has been approved by the cabinet, but not yet passed by parliament. The transition to the pan-European Emissions Trading System for heating and transport (EU ETS 2) has been postponed to 2028.

How to change supplier and what people usually trip up on

Are you in basic supply? You can leave in two weeks.

The Grundversorger (default supplier) is the supplier with the highest number of households in your grid area. If you have never consciously concluded a contract, you are almost certainly with them. It is easy to check: pursuant to Section 41 of the Energy Industry Act (EnWG), the contract must explicitly state whether the supply is provided under the basic supply tariff.

Termination: two weeks’ notice, in text form (§ 20 GasGVV). The supplier is obliged to confirm the termination immediately, stating the end date. Termination fees are prohibited by law, including when changing suppliers.

The supplier has put up the price — you have the right to leave immediately

Under Section 41 Paragraph 5 of the Energy Industry Act (EnWG), the household must be notified of a price increase no later than one month before the change comes into effect, in plain language, indicating the reason for and scope of the change. From this moment on, you have the right to terminate the contract without a notice period, on the date the new price comes into effect. No fee may be charged for this.

The exception that almost nobody writes about: if the supplier is simply passing on the change in the VAT rate established by law, no notification is required and the right to early termination does not arise (Section 41(6) Energy Industry Act (EnWG)). Do not count on a Sonderkündigung (special right of termination) in this case.

A special rule for moving home: the contract can be terminated extraordinarily with a six-week notice period. However, if the previous supplier offers to continue the contract under the previous conditions at the new address within two weeks, the termination will not take effect (§ 41b para. 5 EnWG).

Seven pitfalls when choosing a tariff

Monthly payment and annual bill: your rights

A large back payment is due – what to do

1. Check your meter readings against those on the bill. A reading error is the most common cause.
2. Check the price in the bill against the contract and all price change notices.
3. Check that all your payments and promised bonuses have been credited: some suppliers do not pay the bonus until reminded.
4. If payment is beyond your means — demand correction from the provider in writing. Do not reduce the payment unilaterally: this leads to late fees and interest.
5. In case of dispute, contact the Verbraucherzentrale (consumer advice centre) or the energy ombudsman (Schlichtungsstelle Energie) — filing a complaint there also blocks disconnection for the disputed amount.

If you can’t pay: debts and gas disconnection

Gas can be disconnected for non-payment, but the conditions are strict and all must be met simultaneously (§ 41f EnWG):

• a payment reminder (Mahnung) has been sent to you;
• the written threat of disconnection (Androhung) must precede disconnection by at least four weeks;
• debt amounts to at least two monthly payments (or at least one-sixth of the estimated annual bill if Abschläge were not paid);
• and additionally — at least €100;
• disconnection notice is given separately, eight working days in advance.

What is not counted towards the debt amount: amounts that you have disputed in writing, with good reason and on time; debt for which there is a deferment agreement; debt resulting from a disputed price increase on which there is not yet a final court ruling; and any amount already being considered by a mediation body.

An instalment agreement is your right, not a favour

Having received a disconnection warning, you have the right to demand a settlement offer (Abwendungsvereinbarung) — § 41g EnWG. The supplier must issue it within a week. The content is set by law: interest-free instalment payments for the debt, plus continued supply as long as you pay your current bills.

Special protection based on health status and age

Disconnection is considered disproportionate if, due to personal circumstances — especially those related to health or age — there is a concrete danger to life or health (§ 41f Abs. 2 EnWG). Such circumstances must be declared in written form; the supplier is obliged to inform you of this possibility at the same time as the threat of disconnection and to provide an address for contact.

Additionally, together with the threat, the supplier must list free ways to avoid disconnection: local assistance services, energy consultations, alternative payment plans, debt counselling, and state social support with agency details.

State aid

If you receive basic social security, heating debts can be taken over by the authority to preserve your housing—typically as an interest-free loan (§ 22 Abs. 8 SGB II). When receiving housing allowance (Wohngeld), permanent heating and CO2 price supplements are included in the calculation—from 110 € per month for one person and more for families (§ 12 WoGG).

If the supplier went bankrupt

Gas will not be cut off: you automatically fall into replacement supply (Ersatzversorgung, § 38 EnWG) from your local Grundversorger for a maximum of three months. But prices there are set separately and are usually high, and they can be revised on the 1st and 15th of each month without any notice period. Practical steps: cancel the direct debit mandate with the insolvent company, take meter readings and submit them to the network operator, obtain written confirmation of the start date of substitute supply, and conclude a normal contract as soon as possible.

For renters: the landlord must bear part of the CO2 fee

Since 2023, a law has been in effect on the distribution of CO2 costs between landlord and tenant (CO2KostAufG). The logic is simple: the worse the building is insulated, the more the owner pays – because it is the owner who decides whether to insulate the building or not.

If heating is central and the owner has the contract with the supplier, they distribute it themselves in the calculation of utility costs – check that the line item is there.

If you have your own gas boiler in the flat (Gasetagenheizung) and the contract is in your name, you need to claim the money yourself. Pursuant to § 6 Abs. 2 CO2KostAufG, this is done in text form and within 12 months from the invoice date of the supplier. Missed the deadline – right expired. This is one of the most common financial losses for tenants.

Another lever: if the supplier is chosen by the owner and the tariff is clearly excessive, you may refer to the requirement of economy (Wirtschaftlichkeitsgebot, § 556 Abs. 3 BGB) and demand reimbursement of the excess costs.