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A dynamic electricity tariff is a way to lower your electricity bill by adjusting the tariff to your actual consumption.
What is a dynamic electricity tariff?
A dynamic electricity tariff is a tariff that is based on the actual electricity prices on the market.
- The price of electricity is calculated hourly, weekly or monthly, depending on the tariff, and varies according to supply and demand. So with a dynamic electricity tariff, you pay different prices depending on the demand for electricity.
- This is particularly interesting for electricity tariffs that use renewable energies whose availability fluctuates: If there is a surplus at the moment, they are significantly cheaper than other types of energy. But if energy from the sun, water and wind is in short supply, they are more expensive. Tariffs that feed in different energy sources may switch to other types during this time.
- With a dynamic electricity tariff, you have the opportunity to use green energy specifically when it is generated and when it is cheap. In this way, you can not only consciously save electricity, but also contribute your share to the energy transition.
- The prerequisite is usually a digital electricity meter, a smart meter. It allows electricity usage to be evaluated in real time and displayed for you in an app, for example.
How can you benefit from a dynamic electricity tariff?
A dynamic electricity tariff offers you several advantages, such as:
- Flexibility: you can shift your electricity consumption to the most convenient time to benefit from lower rates.
- Cost savings: you can save when electricity rates are low and avoid consuming at times when electricity rates are high. Check the flexible electricity tariff app for the current price and decide whether, for example, you want to charge your e-car immediately or prefer to charge it at another time.
- Environmentally friendly: You help stabilize the power grid by increasing consumption during times of high power supply and reducing consumption during times of low power supply.
- Check: Renewable energy is yielding little power right now, or energy is just generally very expensive right now? One look at the app and you’ll know exactly what energy you’re currently using and at what price.
What should you look for in a dynamic electricity tariff?
If you choose a dynamic electricity tariff, you should pay attention to the following:
- Review your consumption habits: Make sure you are able to match your consumption to electricity prices and consume at times when prices are low. Not everything can be shifted to the low-priced periods.
- Review the terms of the contract: Find out the terms of the contract and how prices may change to avoid surprises.
- Check availability: fixed rates are still the standard. Check with your provider to see if dynamic electricity rates are available or being planned.
Flexible vs. fixed electricity tariff: What are the advantages?
Fixed electricity tariffs are the standard in Germany. What are their advantages and when should you rather not consider switching to a dynamic tariff?
- A fixed electricity tariff gives you more planning security. You know exactly how much you’ll have to pay each month, and you can plan your budget better.
- You won’t have to worry about short-term price fluctuations because your rate will remain stable over time.
- A flexible tariff, on the other hand, gives you more control over your electricity usage and helps you live more consciously and sustainably.
- You can take advantage of short-term price fluctuations and save money. For example, if you reduce your consumption when the price of electricity is high, you can lower your bill.
- You have the option to adjust your electricity consumption to your personal needs. For example, you can save electricity by shifting your consumption to the evening or night, when electricity prices are lower.
