Festpreistarif: What Is a Fixed-Price Electricity Tariff?

A Festpreistarif (fixed-price tariff) is an electricity contract in which your price per kilowatt-hour stays the same for the agreed contract period. It gives you a stable, predictable bill instead of a price that moves with the market.

"Festpreis" is German for "fixed price." In a Festpreistarif your energy supplier guarantees the working price (cents per kWh) for the duration of the contract, so the rate does not change even if wholesale electricity prices rise. It is the most common tariff model offered by German suppliers, including large providers such as Vattenfall and E.ON.

A Festpreistarif fixes the supplier's working price and usually the basic monthly fee for the contract term. It does not fix how much you consume, and depending on the contract it may not shield you from changes in state-set price components (taxes, levies, or grid fees). Read the terms to see whether these are included: if they are, the whole price is locked; if not, only the supplier's portion is guaranteed.

The main benefit is price stability and planning security. You know your rate in advance, your bill is predictable across the contract period, and you are protected from short-term market spikes. This makes budgeting easier for households and businesses that want certainty rather than chasing the lowest possible price.

A fixed price also means you cannot benefit when market prices fall. Variable and dynamic tariffs — a newer but fast-growing option in Germany — pass changing exchange prices through to you, so you can save by shifting usage to cheaper hours, but you carry the price risk. A Festpreistarif trades that upside away in return for certainty.

Choose a Festpreistarif if you value a predictable bill, cannot easily move your consumption to off-peak hours, and want protection against rising prices. Consider a dynamic tariff instead if you have flexible loads (EV charging, heat pump, battery) and can shift usage to low-price periods to capture savings.

When comparing Festpreis offers, check the working price per kWh, the basic monthly fee, the length of the price guarantee, the minimum contract term and notice period, and any bonus that only applies in the first year. A longer guarantee gives more certainty; a short one can leave you exposed to a re-priced follow-up tariff.