Optimal gas and electricity procurement on a liberalized market

How to do it?

Fig. 1 Gas market areas in Germany

Fig. 2 Development of gas prices at wholesale level

Fig. 3 Comparison of different tenders for the supply of gas

Fig. 4 Development of electricity prices at wholesale level

While it has been normal for the companies for many years to obtain quotations for the electricity supply from competing companies by calling for tenders, this procedure is only possible on the gas market in Germany for about one year now. In order to make optimum use of the chances provided by the liberalized market, the gas customers have to be acquainted with and observe the new „rules“ when concluding a new supply contract. This article reveals the framework conditions on the energy markets in Germany. Practical examples are used to describe how to be successful as well as to demonstrate the considerable saving potentials that can be realized at present.

Market mechanisms on the German gas market

The introduction of the two-contract model on the German gas market by October 2008 created the preconditions for an effective trade competition. Until that date, the gas market was broadly characterized by an existing monopoly of the local suppliers. Since that time, however, it is possible for all companies to solicit quotations from competing gas suppliers. In particular companies that need gas for production purposes all the year round get attractive tenders at present.

Although the German gas market had already been liberalized in spring 1998...