2025 Monitoring Report: German Energy Markets Show Stability Amid Changes
The German competition authority and the Federal Network Agency have released their joint 2025 Monitoring Report, highlighting the stability and competitive developments in the electricity and gas markets.
26.11.2025 | German competition authority
The Bundeskartellamt and the Federal Network Agency have published their 2025 Monitoring Report, marking the 20th edition of this analysis. The report focuses on market developments in 2024 and early 2025, providing insights into competition, liberalization, and supply security in the German energy sector.
According to Andreas Mundt, President of the Bundeskartellamt, the unbundling of generation, networks, and distribution has proven successful, leading to a diverse range of offerings in the electricity and gas markets. In 2024, households had the option to choose from 139 electricity and 108 gas suppliers, with no single provider holding a dominant market position for over a decade.
The report highlights record supplier switching rates, with approximately 7.1 million electricity customers changing their providers in 2024, an 18% increase. The gas market also saw a record of around 2.3 million households switching suppliers. This reflects a growing consumer confidence in market mechanisms.
Price trends indicate a slight decrease in energy costs, with household electricity prices averaging 40.1 ct/kWh and gas prices at 12.13 ct/kWh in spring 2025. The introduction of a requirement for electricity suppliers to offer at least one dynamic tariff is expected to enhance the availability of flexible products.
The report also notes a significant shift in electricity generation towards renewable sources, with 54% of gross electricity consumption in 2024 coming from renewables. This marks a substantial increase since 2005, as the energy mix transitions away from fossil fuels and nuclear energy.
Market concentration remains a concern, particularly in conventional electricity generation, where the top five companies hold about 55% of the market share. RWE continues to lead the market, but the report warns that the reduction in conventional capacity due to plant closures has increased the market power of the largest producers.
In the gas market, Germany has transformed into a key European import hub, focusing more on LNG and supplies from Northern Europe following the cessation of Russian pipeline imports. However, market concentration in gas storage remains high.
