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Guide · As of 2026

Basic supply and substitute supply: simply explained

In Germany, no household should be without electricity or gas. This is why there is basic supply (Grundversorgung) and substitute supply (Ersatzversorgung). Both are an important safety net, but often not the cheapest solution. Here you can read when you end up in them, what rights you have and how to get out again.

  • § 36 EnWG
  • § 38 EnWG
  • 2 weeks' notice
  • Moving house
  • Supplier insolvency

When you end up in default or substitute supply

This usually happens without you doing anything. These four situations are typical.

01

Moving in without a contract

You move in and do not have a contract yet. As soon as you use electricity or gas, a contract with the default supplier (Grundversorger) is created, without a signature. You must inform the supplier of this without delay in text form (Textform) (§ 2 Abs. 2 StromGVV).

02

Contract ends without a new contract

Your contract expires or the supplier gives ordinary notice, and you do not have a new contract. The default supplier then supplies you under basic supply.

03

Switch fails

Your new supplier cannot start supplying on time, for example because data is missing. Substitute supply then bridges the gap.

04

Supplier stops supplying

Your supplier suddenly stops supplying you, for example because of insolvency. The default supplier then takes you over under substitute supply. Electricity and gas continue to flow.

Basic supply and substitute supply compared

Basic supply (§ 36 EnWG)

  • The default supplier must supply every household customer at its published general prices and conditions (Allgemeine Preise und Bedingungen).
  • It starts with a contract or simply because you use energy without having another contract.
  • You can cancel at any time with two weeks' notice in text form (§ 20 StromGVV and GasGVV).
  • Price changes must be announced six weeks in advance and take effect from the start of a month.
  • The default supplier may not set different prices depending on when your contract was concluded.

Substitute supply (§ 38 EnWG)

  • It steps in when your consumption cannot be assigned to a supply contract.
  • It lasts no more than three months and ends earlier as soon as a new supply contract begins.
  • It is also provided by the default supplier.
  • Prices can be higher than in basic supply and may be reset on the 1st and the 15th of a month.
  • According to the consumer advice centre (Verbraucherzentrale), you can generally end it without a notice period.

Who is your default supplier?

The default supplier is the energy supply company that supplies the most household customers in a network area. This is often the local municipal utility (Stadtwerke), but not always. There can be different default suppliers for electricity and for gas.

The network operator (Netzbetreiber) determines the default supplier every three years on 1 July and publishes it online by 30 September (§ 36 Abs. 2 EnWG). Whether you are in basic supply is shown on your bill. The supplier must state there whether you are supplied under basic supply (§ 40 Abs. 2 EnWG).

Basic supply does not mean lower quality. Electricity and gas come through the same lines. Only the prices and contract terms are different.

Advantages and disadvantages of basic supply

The consumer advice centre advises against staying in basic supply permanently, because prices there are usually high. As a temporary solution, however, it has real advantages.

Advantages

  • The default supplier must supply you. It may only refuse if this would be economically unreasonable for it.
  • Short notice period of two weeks
  • Special termination right (Sonderkündigungsrecht) with every price change
  • If you are threatened with disconnection because of payment arrears, you can ask for an agreement to avoid disconnection (Abwendungsvereinbarung) with interest-free instalments (§ 41g EnWG).

Disadvantages

  • Prices are usually higher than in special tariffs (Sondertarife).
  • No new-customer bonus and no price guarantee
  • You must report moving in and your meter readings yourself.
  • If you stay for a long time, you often pay more than necessary.

Deadlines at a glance

TopicBasic supplySubstitute supply
Cancellation by you2 weeks, in text formgenerally without notice
Durationunlimitedno more than 3 months
Price change6 weeks in advance, from the start of a monthon the 1st and 15th of a month, published online
Afterwardscontinues until you switchmoves into basic supply if there is no other contract

Basis: §§ 36 and 38 EnWG, §§ 5 and 20 StromGVV and GasGVV, and Verbraucherzentrale (as of August 2026).

How to get out of basic supply

Switching to a special contract (Sondervertrag) is easy and costs you nothing. The default supplier may not charge a fee for it.

  1. 01

    Find out your consumption

    You can find your annual consumption on your last bill. After moving in, you can estimate it, for example with a consumption calculator.

  2. 02

    Compare offers

    Compare the unit price (Arbeitspreis), standing charge (Grundpreis), contract term, price guarantee and bonus conditions. The default supplier itself often offers special tariffs too.

  3. 03

    Sign a new contract

    The new supplier usually cancels the basic supply for you. Have your meter number and market location ID (Marktlokations-ID) ready.

  4. 04

    Report your meter reading

    Read the meter on the day of the switch, take a photo and report the reading to the old and the new supplier.

  5. 05

    Check the confirmation

    The new supplier must confirm in text form when it will start supplying you. Afterwards, check the final bill from the default supplier.

Special cases: moving house and supplier insolvency

Moving without a contract: If you do not yet have a contract in your new home, the default supplier supplies you at first. Tell it the date you moved in and your meter reading. Then take your time to sign a suitable contract. When you move, you can cancel your existing special contract with six weeks' notice. This does not apply if the supplier offers you, within two weeks, to continue supplying you at your new address on the existing terms (§ 41b Abs. 5 EnWG).

Supplier stops trading: A supplier that no longer wants to supply household customers must notify the Federal Network Agency (Bundesnetzagentur) at least three months in advance and inform its customers in text form at the same time (§ 5 EnWG). If an insolvency application is filed, things can happen faster. The default supplier then takes over under substitute supply.

What to do in the case of insolvency: Read your meter, ask for confirmation of the start of substitute supply and look for a new contract quickly. Only pay monthly instalments (Abschläge) into the account that the insolvency administrator gives you. You usually have to register any credit balance with the insolvent supplier with the insolvency administrator.

If substitute supply ends after three months and you do not have a new contract, you automatically move into basic supply. According to the consumer advice centre, an increased substitute supply price must then fall to the level of basic supply.

We are happy to compare the tariffs of the suppliers we work with together with you, by phone or via Microsoft Teams, in German, Persian or English.

Frequently asked questions

Am I automatically in basic supply if I do nothing?

Yes, if you use electricity or gas and do not have another contract. The contract with the default supplier is then created by your use of energy. You should still inform the default supplier of the start in text form.

Is basic supply always more expensive?

It is usually more expensive than a special contract. How big the difference is depends on the region, the time and the tariff. So always compare the current prices.

Can the default supplier refuse me?

Only in exceptional cases, if supplying you is economically unreasonable for it (§ 36 Abs. 1 EnWG). It also may not make the contract dependent on you paying the arrears of a previous occupant (§ 2 Abs. 5 StromGVV).

How long can substitute supply last?

No more than three months. It ends earlier as soon as a new supply contract begins. If you do not have another contract after that, you move into basic supply.

Can I switch from substitute supply to basic supply?

Usually yes, if you tell the default supplier explicitly, ideally in writing. According to the consumer advice centre, if the default supplier has lawfully increased the substitute supply prices, you cannot switch to its basic supply for three months. A special contract is possible at any time.

Do I have to pay monthly instalments in basic supply?

Yes, usually monthly. They are based on your previous consumption or the average of comparable customers. If you can credibly show that you use much less, the default supplier must take this into account appropriately (§ 13 StromGVV).

Related topics

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