An alarming analysis from Germany’s Federal Statistical Office reveals that around 4.2 million people could no longer afford to pay their electricity and gas bills in 2024.
That equates to one in twenty citizens officially living in what experts call an “energy emergency.”
The figures show clear differences between homeowners and tenants. Only 3.4 percent of owner-occupied households fell behind on payments, while among renters the share was nearly double at 6.4 percent.
Financial vulnerability of households
The study also points to broader financial instability: nearly one third of the population (32.2 percent) reported being unable to cover an unexpected expense of €1,250 — whether for a broken washing machine, urgent car repairs or replacing a refrigerator.
Why so many cannot pay
The roots of the problem lie in persistently high living costs. Energy prices soared following Russia’s war in Ukraine and have remained elevated.
Housing-related expenses — such as water, waste disposal, elevator maintenance and cleaning — increased by an average of four percent in August 2025 compared to the previous year.
Food costs also continue to weigh on households, despite recent price reductions for some staples, including butter.
There is at least a modest relief: in August 2025, prices for electricity, gas, heating oil, district heating and solid fuels like wood or coal were 2.3 percent lower than in the same month of the previous year.
How households can respond
Experts advise consumers to take proactive steps when faced with mounting bills or reminders:
- Compare prices across providers. Staying with the same company for years can cost hundreds of euros more annually. Switching contracts often yields significant savings.
- Adjust advance payments early. Increasing monthly installments can prevent a financial shock at the end of the year.
- Contact energy providers directly. Customers unable to pay should immediately reach out to arrange installment plans and avoid service cut-offs. Many companies are willing to cooperate.
- Save energy at home. Replacing old appliances, turning off devices instead of leaving them on standby (saving up to €150 per year), and lowering heating temperatures by just one degree can cut heating costs by around six percent.
