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Thursday, September 19, 2024

Dynamic tariffs. An important change from Saturday. You can pay less for electricity

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As of Saturday, August 24, the largest electricity sellers must introduce the option of using dynamic tariffs for households. This applies to companies that serve at least 200,000 end users.

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Dynamic tariffs can reduce your electricity bills

The new tariff will be voluntary. The condition for using it is to have an electricity meter with remote reading (smart meter). The process of replacing these devices is currently underway and is to be completed in 2030, so not everyone will be able to use the new solution immediately.

Unlike traditional tariffs where the customer knows in advance pricethe price you will pay for energy around the clock or during peak and off-peak periods, in dynamic tariffs the price changes at specific times along with price fluctuations on Towarowa The Stock Exchange Energy. In practice, depending on the model the seller chooses, the price may change every quarter of an hour, every hour or every half an hour.

A dynamic tariff can mean lower bills if the consumer is able to adjust their consumption to changing prices. For example, on sunny and moderately windy days, energy prices can be significantly lower due to greater production from photovoltaics and wind turbines. In general, in dynamic tariffs, prices are lower when there is a large production of energy from renewable sources (RES), and higher when RES produce less.

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Dynamic tariffs. In Norway, customers sometimes do not pay for electricity

Dynamic tariffs are used in Europe in countries such as Norway, Spain Whether Netherlands. Experience in these markets suggests that consumers who are able to adjust their consumption to changing energy prices can reduce their bills. In Norway, there are situations where customers do not pay for energy at all or negative prices apply, when the seller pays the customer extra.

This does not mean that dynamic tariffs are risk-free. This was clearly demonstrated by the example of Texas, which was hit by the frost in 2021. Not only did 4.5 million households lose power, but those that still had energy had to pay huge rates for it. There were cases where heating a house for a single night cost the equivalent of a month's salary. However, such extreme situations, i.e. a combination of transmission network failures and reduced energy generation capacity due to frozen wind turbines, do not happen often.



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