Procurement and sales
The supplier can influence this share: buying the energy, customer service and margin. According to the BDEW, in 2026 it made up around 41% of the price on average for household electricity and around 48% for gas.
Guide · As of 2026
Electricity and gas bills: understanding and checking them
The annual bill (Jahresabrechnung) for electricity or gas often has several pages and many technical terms. This guide explains step by step what is on the bill, what the price is made up of and which details are mandatory. This way you can see whether everything is correct and know what to do if there is a mistake.
- Annual bill
- Unit price and standing charge
- Monthly instalments
- Price components 2026
- Complaining about errors
How the annual bill is structured
Every supplier designs its bill a little differently. But you will find the most important parts on almost every electricity and gas bill.
The first page usually shows the invoice amount, the due date and the result: a credit (Guthaben) if you have paid too much, or a back payment (Nachzahlung) if you have paid too little. The invoice amount and due date must be clearly highlighted (§ 40 Abs. 1 EnWG). If you ask, the supplier must explain the bill to you free of charge.
This is followed by the details: the billing period (Abrechnungszeitraum) (also called the consumption period), the meter readings at the start and at the end, your consumption in kilowatt hours (kWh), the prices, the total of monthly instalments (Abschläge) made and the new monthly instalments for the next months. The billing period may be no longer than one year. If you ask, the supplier must also bill monthly, quarterly or every six months (§ 40b EnWG).
For gas, the meter measures cubic metres (m³). But billing is in kWh. For this, the supplier multiplies the cubic metres by the conversion factor (Zustandszahl) and the calorific value (Brennwert). Both values are on the bill. As a rough rule of thumb, the consumer advice centre (Verbraucherzentrale) says: cubic metres multiplied by ten gives roughly the kilowatt hours.
- Billing period: from when to when was the bill calculated? It is usually around twelve months.
- Meter readings: starting and final readings and how they were determined, for example read or estimated.
- Monthly instalments: the prepayments you made during the period.
- Result: credit or back payment and the amount of the new monthly instalments.
Deadlines: you must receive the bill no later than six weeks after the end of the billing period. It becomes due no earlier than two weeks after you receive it. The supplier must fully offset a credit against the next monthly instalment or pay it out within two weeks (§ 40c EnWG).
Unit price, standing charge and monthly instalment
Your price consists of two parts: a price per kilowatt hour and a fixed standing charge. The monthly instalment, on the other hand, is only a prepayment.
| Term | What is it? | What to look out for? |
|---|---|---|
| Unit price (Arbeitspreis) | Price per kilowatt hour used, stated in ct/kWh | Compare with the price in your contract confirmation or the last price notice |
| Standing charge (Grundpreis) | Fixed amount per month or year, regardless of consumption | You pay it even if you use little |
| Monthly instalment (Abschlag) | Monthly prepayment towards the next annual bill | Should match your expected consumption |
| Credit or back payment | Difference between the actual costs and the monthly instalments made | A credit is offset or paid out |
Check whether the prices on the bill are stated with or without 19% VAT (Mehrwertsteuer). Offers for households usually state gross prices.
What the price is made up of
The supplier only sets part of the price itself. Many components are set by law or calculated by the network operators. The bill must show these charges separately (§ 40 Abs. 3 EnWG).
Network charges
This is the fee for using the electricity or gas lines (Netzentgelte). It goes to the network operator and differs by region. According to the BDEW, electricity network charges for households fell in 2026 because the federal government subsidises the transmission networks.
Metering
Costs for the meter, the measurement and data transmission (Messstellenbetrieb). For a modern metering device, meaning a digital electricity meter, no more than €25 gross a year may be charged. For smart metering systems, separate upper limits apply depending on consumption (§§ 30 and 32 MsbG).
Taxes, levies and surcharges
For electricity: electricity tax (Stromsteuer, 2.05 ct/kWh), the concession fee (Konzessionsabgabe) paid to the municipality and surcharges such as the CHP surcharge (KWKG-Umlage), the offshore grid surcharge (Offshore-Netzumlage) and the surcharge for special network use (Aufschlag für besondere Netznutzung). For gas: energy tax (Energiesteuer), the concession fee and the CO₂ price. In 2026, the CO₂ price is between €55 and €65 per tonne (§ 10 BEHG). The gas storage surcharge (Gasspeicherumlage) has been abolished since 1 January 2026.
VAT
19% VAT is added to the total net amount. This applies to electricity and to gas.
Average prices in 2026 according to the BDEW
The values show the average in Germany. Your own price can differ considerably, depending on region, tariff and consumption.
| Component | Electricity | Gas |
|---|---|---|
| Average price 2026 | 37.0 ct/kWh | 11.93 ct/kWh |
| Procurement and sales | 41.0% | 48.1% |
| Network charges | 25.0% | 21.5% |
| Taxes, levies and surcharges | 34.0% | 30.4% |
Source: BDEW electricity price analysis and BDEW gas price analysis, data as of August 2026. Electricity: household with 3,500 kWh a year. Gas: detached house with 20,000 kWh a year, network charges including measurement and metering, levies including the CO₂ price. Average prices including all taxes.
These details must be on the bill
§ 40 Abs. 2 EnWG sets out what must be on an electricity or gas bill. If something is missing, you can ask the supplier.
- Name, address and contact details of the supplier, including phone number and email
- The supplied point of consumption with its identification number, usually the market location ID (Marktlokations-ID, MaLo-ID)
- The responsible metering point operator (Messstellenbetreiber) and network operator with their code numbers
- Contract duration, tariff name and applicable prices, as well as a note on whether you are in basic supply (Grundversorgung)
- Next possible cancellation date and notice period
- Starting and final meter reading, consumption in the billing period and how it was determined, meaning read or estimated
- Comparison with your consumption in the same period of the previous year, which can also be shown as a chart
- Comparison with the consumption of comparable customer groups
- Information about the energy arbitration board (Schlichtungsstelle Energie), the consumer service of the Federal Network Agency (Bundesnetzagentur) and energy advice services
- Information about switching supplier
What you should look out for
Take ten minutes for your annual bill. Have your contract, your last bill and your own meter readings next to you.
What you should check
- Name, address, customer number and meter number match your contract and the meter.
- The meter readings match your notes or photos.
- The unit price and standing charge match the contract or the last price notice.
- All monthly instalments made and any agreed bonus have been taken into account.
- The consumption is plausible compared with the previous year.
Common mistakes
- Mixed-up meters, especially in apartment buildings
- Wrong prices or a wrong billing period
- Estimated instead of read meter readings
- Missing monthly instalments
- An agreed bonus was not deducted
What to do if there is a mistake in the bill
Most mistakes can be cleared up directly with the supplier. It is important that you respond in writing and with evidence.
- 01
Recalculate the bill
Multiply your consumption in kWh by the unit price and add the standing charge for the period. If the prices are stated net, add 19% VAT. Then deduct the monthly instalments made and any bonus. This way you can quickly spot major mistakes.
- 02
Complain in writing
Write to the supplier with your customer and invoice number and explain what you think is wrong. Enclose photos of the meter. The supplier must answer a complaint within four weeks (§ 111a EnWG).
- 03
Pay under reservation
The consumer advice centre advises paying the amount under reservation (unter Vorbehalt) at first. In basic supply, you may only refuse to pay if an obvious mistake is seriously possible, or if the consumption is more than twice as high as in the same period of the previous year without any apparent reason and you ask for the meter to be tested. Do not reduce your monthly instalments on your own.
- 04
Ask for the estimate to be explained
If the consumption was estimated, the bill must show this clearly and state the reason and the basis. If you ask, the supplier must explain the estimate in text form (Textform) free of charge (§ 40a EnWG). Send your own meter reading with a photo.
- 05
Use arbitration
If the supplier does not help or does not reply within four weeks, you can contact the energy arbitration board. The procedure is generally free of charge for consumers. You can also get advice from the consumer advice centre.
Frequently asked questions
Why is my back payment so high?
Common reasons are higher consumption, increased prices or monthly instalments that are too low. An earlier estimate can also lead to a back payment if it was too low. Compare your consumption with the previous year and check the meter readings.
By when must I receive the annual bill?
No later than six weeks after the end of the billing period. The same deadline applies to the final bill after the contract ends (§ 40c EnWG). If the bill does not arrive, remind the supplier in writing and set a deadline.
When will I get my credit?
The supplier must fully offset it against the next monthly instalment or pay it out within two weeks. A credit from the final bill after the contract ends must be paid out within two weeks (§ 40c Abs. 3 EnWG).
Can I have my monthly instalment changed?
Yes. Monthly instalments should be based on your previous consumption or the average of comparable customers. If you can credibly show that you use much less, the supplier must take this into account appropriately (§ 41b Abs. 3 EnWG). A slightly higher monthly instalment can make sense if you want to avoid a back payment.
What is the market location ID (Marktlokations-ID)?
The market location ID (MaLo-ID) is an 11-digit number. It identifies the point to which electricity or gas is supplied and billed. It is on your bill and, when you switch supplier, helps to identify your connection clearly.
Does legal expenses insurance help in a dispute about the bill?
It may, if your policy includes legal cover for private contracts and the dispute arose after any waiting period has ended. Check your insurance conditions for this. But often the free energy arbitration board or advice from the consumer advice centre already helps.
Related topics
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How to read your meter correctly: electricity meters, smart meters, HT/NT and gas meters explained. When to take a reading and what helps against estimates.
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Electricity or gas price increase? How to check the letter, use your special termination right under § 41 EnWG and switch in time without a gap in supply.
Learn moreInstalment & back payment calculator
Are you paying a high enough monthly instalment (Abschlag)? Enter two meter readings with their dates. The calculator projects your consumption over a year and shows the right instalment as well as a possible back payment (Nachzahlung) or credit (Guthaben).
Open the calculatorSwitching supplier
How to switch electricity or gas supplier without a gap in supply: who cancels, which details are needed, 24-hour switch, 14-day withdrawal and the process.
Learn moreEnergy terms A–Z
Abschlag, Arbeitspreis, MaLo-ID, Netzentgelt or Zustandszahl: the key German terms on electricity and gas bills and in contracts, explained briefly and clearly.
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Where your household electricity goes, what stand-by costs and how to save when cooling, washing and cooking. With benchmark figures from the Stromspiegel.
Learn moreSources
- Gesetze im Internet: Energy Industry Act (EnWG), §§ 40 to 40c, 41b, 111a
- BDEW: Electricity price analysis August 2026
- BDEW: Gas price analysis August 2026
- Gesetze im Internet: Fuel Emissions Trading Act (BEHG), § 10
- Bundesregierung: Abolition of the gas storage surcharge
- Bundesnetzagentur: Metering devices and smart metering systems
- Verbraucherzentrale: Are your electricity or gas bill and monthly instalments correct?
- Verbraucherzentrale Niedersachsen: Six common mistakes in electricity and gas bills
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