Save electricity intelligently with dynamic tariffs

What are dynamic tariffs?

Dynamic or flexible tariffs are a modern approach to pricing electricity. This means that you always pay an adjusted price for electricity. Back in the 1960s, a model was introduced in which you pay less for electricity at night than during the day. Although dynamic tariffs are based on the same idea - to even out the load on the electricity grid by distributing it evenly - however, they work in a completely different way. In contrast to conventional variable tariffs, the typical peak times are not contractually agreed in advance with surcharges, but the price changes depending on supply and demand on the energy market. The price is therefore recalculated several times an hour.

How do they work?

The way dynamic tariffs work is based on the concept of the real-time energy market. When the demand for electricity is high, for example during peak times in the afternoon, prices rise. At times of low demand, such as in the early morning hours, prices can be lower. They reflect the actual cost of generating energy and incentivise consumers to shift their energy consumption to take advantage of lower prices. In addition, an evenly utilised electricity grid brings a number of benefits, such as grid stability, efficient use of resources and securing a sustainable energy future. Stable electricity grids make it easier to integrate renewable energies and innovative technologies.

Why is this relevant now?

On 27.05.2023, the Act on the Restart of the Digitisation of the Energy Transition (GNDEW) came into force. This is intended to accelerate the rollout of smart meters (intelligent metering systems [iMSys]). One of the measures adopted is that all electricity suppliers must offer dynamic tariffs from 2025. For electricity suppliers with more than 100,000 end consumers, this applies immediately. To be able to use these as an end customer, you need a smart electricity meter. The cost of this will be capped at €20 per year from 2024, making a smart meter no more expensive than a standard meter. But what are the benefits of a dynamic tariff for consumers?

Advantages for consumers

The fact that the use of dynamic tariffs has a positive impact on the environment, electricity grids and the future of energy has already been discussed. However, one point is particularly interesting for the end consumer: the electricity bill can become considerably cheaper! And there are other advantages too:

1. Adjust electricity consumption to tariffs:

It is often easy to estimate price fluctuations throughout the day. Electricity is usually cheaper early in the morning and at night, and most expensive in the afternoon and evening. In particular, processes that consume a lot of electricity within a certain period (e.g. a washing machine or charging an electric car) can be planned precisely at the cheapest times. This can be implemented quite easily and efficiently, especially in conjunction with smart home systems.

2. Conscious energy consumption

The prospect of being able to save electricity and therefore money encourages people to be more aware of their consumption. Does the television have to be on all day? Would it be better to switch off all the lights when you leave the house? This more conscious attitude is good for the environment and your wallet.

3. Integration of renewable energies

These tariffs could help to optimise the use of renewable energy by incentivising consumers to shift their consumption to times when renewable energy sources such as solar and wind are abundant.

4. Technological support

As mentioneddynamic tariffs can only really be utilised if an iMSys is available. This provides consumers with real-time data and price information so that they can make informed decisions about their energy consumption and benefit from low prices. However, the smart electricity meter alone is not enough, as the data also needs to be made comprehensible and visualised. This is where GreenPocket comes into play.

Why is visualisation software particularly worthwhile for dynamic tariffs?

The dynamic tariffs must be visualised so that they are also visible to the consumer. Comprehensive analyses in particular can help to immediately see the effects of a change in energy consumption. Directly formulated calls to action, tips and further knowledge transfer can also be helpful here. All of this can be realised with the GreenPocket software:

1. ‍Real-time data monitoring

‍iMSys record the energy consumption of a household or company in real time. This allows consumers to track their current electricity consumption and understand how it changes throughout the day. For dynamic tariffs, where prices vary according to demand, real-time data monitoring helps to adjust usage to times when prices are lower.

2. Current price information

With the GreenPocket software, consumers can see at which times electricity is cheaper or more expensive and thus better manage their own consumption and purchases. They can also see how much the total costs have changed compared to the static tariff and how much has been saved. Insight into spot prices and general insights into price trends can therefore lead to intelligent long-term cost savings.

3. Understanding consumption

By monitoring energy consumption, consumers can better understand how different devices and activities influence consumption. GreenPocket displays energy consumption graphically, helping to analyse energy consumption data over longer periods of time. This encourages more conscious consumption behaviour and helps to recognise trends, identify potential energy savings and improve their overall efficiency when dealing with dynamic tariffs.‍

By the way, if you are wondering what will happen if electricity prices shoot up again in response to an energy crisis: The electricity price cap of 40 ct/kWh, which comes into force in January, also applies to dynamic tariffs. In general, the situation on the energy market appears to be easing again, with electricity prices considerably cheaper than in the second half of 2022, albeit still slightly above the pre-crisis level. People with dynamic electricity tariffs were the first to benefit from the falling prices.

Start managing the energy of tomorrow today!

Dynamic tariffs are really worthwhile when used skilfully and tracked intelligently. Especially for households with high consumption, electric cars or perhaps even their own renewable energy systems. How about you, as an energy supplier, offering dynamic tariffs directly in a bundle with intuitive visualisation software? Contact us - we would be happy to present our EnergyCockpit to you in a customised webinar. Or are you interested in using dynamic tariffs yourself? Your energy supplier will certainly be able to make you a good offer, including iMSys and visualisation software.