Gas prices up by over 200% within a year¹: New heating saving wave expected
Rising gas tariffs could increase heating costs in 2026 by 670 to 1,000 euros. As during the 2022 energy crisis, tado° expects increased saving measures again this winter: back then, 80 percent of Germans lowered their room temperature. Current tado° data shows that the next wave of energy saving is already beginning: in October, customers used smart energy-saving features 21 percent more frequently than in the previous year.
Munich, November 3, 2026. Heating with gas is becoming noticeably more expensive for households in Germany again. At the German virtual trading point THE (Trading Hub Europe), short-term gas deliveries cost 102.65 euros per megawatt hour on October 28. A year ago, it was around 34 euros.¹ This means the price has increased by 202 percent. This price rally is also driving futures market prices, through which suppliers purchase gas for their customers, massively upward.
This impacts consumer prices: anyone signing a new gas contract today pays an average of around 14 cents per kilowatt hour – in autumn 2025, it was around 9 cents.² For a single-family house with a typical annual consumption of 20,000 kWh, heating costs for a new contract increase from around 1,800 euros to around 2,800 euros a year, an increase of about 1,000 euros. For a typical apartment in a multi-family house with around 13,300 kWh, it is about 1,870 euros instead of 1,200 euros, around 670 euros more.³ Across all households combined, including existing and new customers, the gas price currently stands at around 12.7 cents per kilowatt hour.
These consumer price increases are expected to continue, as energy suppliers hedge their gas purchasing prices for one to two years. As soon as these hedges expire, gas contracts will be fully adjusted to the increased wholesale prices.
October 2026: Data shows direct reaction of households to rising gas prices
Data from 5.6 million connected smart tado° thermostats shows: in October 2026, the use of energy-saving features increased by 21 percent compared to the previous year. This includes automatic presence detection, open-window detection, and smart schedules in the tado° app. Furthermore, 64 percent of users opened the app at least once a week in October to view their heating cost forecast and personal energy savings report. For comparison: in 2025, 53% of users looked at their energy consumption in the app.
“The usage of our energy-saving features is reaching a record high. In light of rising gas prices, saving energy is regaining importance,” says Christian Deilmann, co-founder and Managing Director of tado°. “We therefore expect consumers to save energy just as consistently this coming winter as during the 2022 energy crisis. They have no influence on global gas prices, but they can actively reduce their own consumption with smart thermostats.”
Back in the winter of 2022/23, 80 percent of German tado° users lowered their room temperature by an average of 0.8 °C to 19.4 °C to save energy and costs.4 A reduction of 1 °C can reduce heating energy consumption by around 6 percent.5 Smart energy-saving features were also used more frequently at that time. The current data confirms the pattern: rising heating costs motivate consumers to actively reduce their energy consumption.
Geopolitical crises and low storage levels drive prices
Global uncertainties resulting from the Iran war are primarily responsible for the price explosion. Concerns over liquefied natural gas (LNG) bottlenecks are causing risk premiums in international markets to surge. In addition, Germany faces a tense baseline situation: at the start of the heating season, gas storage facilities are filled to only around 61 percent – a value that falls far short of statutory targets and puts heavy pressure on the markets6. To make matters worse for end consumers, rising CO2 levies and higher grid fees are adding substantial extra pressure to prices.
Many households with existing contracts are currently paying significantly less. However, that is likely to change: comparison portal Verivox expects gas price increases of 10 to 20 percent if wholesale prices remain at current levels.⁷ Further price increases will follow, driving heating costs up in line with wholesale prices.
Back in the winter of 2022/23, 80 percent of German tado° users lowered their room temperature by an average of 0.8 °C to 19.4 °C to save energy and costs.4 A reduction of 1 °C can reduce heating energy consumption by around 6 percent.5 Smart energy-saving features were also used more frequently at that time. The current data confirms the pattern: rising heating costs motivate consumers to actively reduce their energy consumption.
Geopolitical crises and low storage levels drive prices
Global uncertainties resulting from the Iran war are primarily responsible for the price explosion. Concerns over liquefied natural gas (LNG) bottlenecks are causing risk premiums in international markets to surge. In addition, Germany faces a tense baseline situation: at the start of the heating season, gas storage facilities are filled to only around 61 percent – a value that falls far short of statutory targets and puts heavy pressure on the markets6. To make matters worse for end consumers, rising CO2 levies and higher grid fees are adding substantial extra pressure to prices.
Many households with existing contracts are currently paying significantly less. However, that is likely to change: comparison portal Verivox expects gas price increases of 10 to 20 percent if wholesale prices remain at current levels.⁷ Further price increases will follow, driving heating costs up in line with wholesale prices.
About tado°
tado° is Europe's leading company for intelligent home energy management. The company helps households optimise their energy consumption, reduce costs, and use energy more efficiently, regardless of the existing heating and energy infrastructure. Founded in Munich in 2011, tado° combines innovative hardware, intelligent software, and digital services into one easy-to-use platform. Products and services range from smart heating and cooling management to intelligent electric vehicle charging, PV integration and dynamic energy tariffs. In this way, tado° automatically optimises energy consumption and shifts it to times when electricity is cheapest and greenest. tado°’s vision: Energy in harmony with nature.
¹ Federal Network Agency, “Wholesale gas prices", THE Day-Ahead, data source EEX (values from 28.10.2026 and 27.10.2025)
² Verivox: “Gas prices for new customers reach lowest level of the year" (01.09.2025),
autumn 2025 around 9 ct/kWh
Verivox: Gas prices, currently around 14 ct/kWh (new customers, as of 29.10.2026) or around 12.7 ct/kWh (average existing and new customers, as of 01.10.2026)
³ Own calculations based on Verivox new customer prices (see ²); consumption: single-family house 20,000 kWh/year, apartment in multi-family house 13,333 kWh/year (80,000 kWh/year divided by 6 apartments) (BDEW reference values)
⁴ tado°: “80% of German households turned down the heating in winter 2022":
⁵ Consumer Advice Center Lower Saxony: “12 tips for saving energy at home"
⁶ Federal Network Agency: “Current status of gas supply" – gas storage levels (as of 20.10.2026)
⁷ Verivox: “Gas prices rise – is an expensive winter ahead?" (20.08.2026)