Understanding your electricity bill: every line explained (2026)

Base fee, consumption price, meter reading, prepayment and taxes — read your bill line by line and spot where you can save.

VertragSpar EditorialPublished on 14 June 202611 min

The two numbers that set your price

Every electricity bill is built on two values: the base fee (Grundpreis) and the consumption price (Arbeitspreis). The base fee is a fixed monthly charge regardless of usage — it covers meter rental and administration. The consumption price is charged per kilowatt-hour (kWh) and is the largest share for most households.

The most common comparison mistake is looking only at the cents per kWh. Only both values together make up your annual cost. The simple formula: annual kWh × consumption price + 12 × base fee.

If you use little, pay special attention to a low base fee — with low usage the fixed charge weighs more heavily than the kWh price.

Reading the meter and usage correctly

The bill shows a start and an end meter reading. The difference is your actual usage in the billing period. If the reading does not match reality, the bill is based on an estimate — and estimates often lead to back payments.

Average usage is roughly 1,500 kWh for one person and 2,500 kWh for two per year. If your figure is much higher, look for causes: old appliances, electric water heating or a second fridge running constantly.

Ideally report your meter reading yourself once a year instead of letting it be estimated. That way you pay only for real usage and avoid surprises.

Prepayment: why it is not your actual cost

The monthly prepayment (Abschlag) is only an advance on expected annual usage — not your actual bill. At year-end the real usage is reconciled: you get a credit back or have to pay extra.

A deliberately high prepayment leads to a credit at year-end — it feels good but is effectively an interest-free loan to the provider. Too low a prepayment means a nasty back payment.

You may adjust the prepayment if it does not match your usage. This usually takes a few clicks in your account and protects your budget from swings.

Taxes, levies and grid fees

A large part of the price consists of state-regulated components: electricity tax, VAT, concession levy and grid fees. These are similar across providers in a region — you cannot compare them away.

Competition happens on the pure energy price and the base fee. That is exactly where a comparison helps: the regulated parts stay the same, but energy and base prices differ noticeably between providers.

If your bill shows a new-customer bonus, it is usually listed as a separate credit. Check whether it has already been applied or is only paid after twelve months.

Spotting savings — and acting

Compare your current annual cost with offers for your postal code and your real usage. If your current price per kWh is well above the market level, switching is the fastest lever.

Basic supply (Grundversorgung) is almost always especially expensive. If your bill says “Grundversorgung” or “Ersatzversorgung”, switching pays off immediately.

Keep your last annual bill — it contains everything you need for a comparison: usage, postal code, provider and contract end.

Practical tips

Calculate your annual cost yourself: usage × consumption price + 12 × base fee.
Report your meter reading once a year yourself instead of letting it be estimated.
Adjust the prepayment to real usage — do not hand over an interest-free loan.
With low usage, a low base fee matters more than the kWh price.
If the bill says “Grundversorgung”, compare and switch immediately.

Common mistakes to avoid

Comparing only the kWh price and ignoring the base fee.
Treating the prepayment as the real bill and being surprised at year-end.
Letting the meter be estimated and getting incorrect bills.
Seeing a prepayment credit as a “profit” rather than too high an advance.
Staying in basic supply because the bill looks “normal”.

Checklist before you compare

Found the base fee and consumption price on the bill.
Checked meter reading (start/end) and real usage.
Calculated the annual cost yourself.
Compared the prepayment with real usage.
Checked whether you are in basic supply.
Last annual bill ready for the comparison.

Frequently asked questions

What is the difference between base fee and consumption price?

The base fee is a fixed monthly charge regardless of usage. The consumption price is charged per kWh used. Together they make up your cost.

Why do I get a back payment even though I pay monthly?

The prepayment is only an advance. If it was lower than your real usage, a back payment arises at year-end.

How do I find my annual usage?

It is on the annual bill in kWh, usually as the difference between the start and end meter readings.

Can I save on taxes and grid fees?

No, these are regulated and similar everywhere. You can save on the energy and base price through a provider comparison.

Is a high prepayment credit good?

Not necessarily. It means you prepaid too much. A correctly set prepayment protects your budget.

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