Are you wondering how to save on electricity thanks to the dynamic tariff at PGE? Find out what benefits and risks this solution brings, how to change the tariff and whether it is worth choosing dynamic energy prices. Check the details.
Dynamic tariffs on the energy market are an increasingly popular solution that gives consumers the opportunity to have greater control over their electricity bills. One of the companies offering such solutions in Poland is PGE Obrót, which recently introduced the “Dynamic energy from PGE” product.
What is dynamic energy from PGE?
Dynamic energy from PGE is an offer based on a variable electricity price, the rate of which changes every hour, depending on the situation on the Polish Power Exchange (TGE). This means that, unlike standard tariffs based on a fixed energy price, the cost of electricity in this tariff may change dynamically during the day, reflecting current price changes on the stock exchange.
The advantage of this approach is the ability to use cheaper energy during periods when the price on the stock exchange is lower, e.g. at night or in periods of lower energy demand. However, this also carries the risk of higher prices during peak times. Therefore, this offer is especially recommended to people who are able to adjust their energy consumption to market changes.
Risks of a dynamic offer
Choosing a dynamic tariff carries certain risks that are worth considering before deciding to change the tariff. The key ones are:
- Volatility and unpredictability of market prices – energy prices on the Polish Power Exchange (TGE) may fluctuate significantly during the day, which means that it is difficult to predict how much we will pay for energy in a given month.
- Influence of external factors – energy prices may depend on macroeconomic, geopolitical events or weather conditions, which may lead to sudden price increases.
- No maximum prices – when using a dynamic offer, we cannot use the maximum prices specified by the legislator, which means that our bills may be higher than with the standard tariff.
- Commitment to consumption management – to fully benefit from the benefits of the offer, it is necessary to actively monitor price changes on the stock exchange and adjust your energy consumption to these changes.
Despite the risks, a dynamic tariff may be a beneficial solution for people who are ready for greater flexibility in managing energy consumption and have appropriate tools, such as energy storage or smart home systems that enable more efficient energy use.
Benefits of a dynamic offer
The dynamic tariff at PGE is an option that can bring real savings, especially for those who:
- They consciously monitor the energy market – if you regularly monitor energy prices on the Polish Power Exchange (TGE), you can adjust your consumption to periods when prices are lower.
- You have an energy storage or smart home solution – people who have invested in technologies such as energy storage or intelligent home management systems can effectively optimize energy consumption depending on its current price.
- You want to manage your energy better – dynamic tariff encourages more conscious use of electricity, which may translate into savings, especially in periods of lower prices.
The dynamic energy offer from PGE is addressed to customers who have the G1x tariff and use energy only for their own use (e.g. prosumers). An additional condition is to have a meter installed that allows remote reading of energy consumption.
How does dynamic pricing work?
The dynamic price in PGE’s offer consists of several elements. The main component is the exchange price, determined on the Polish Power Exchange. In addition, there are fees for energy purchases and taxes required by law. The final price you will pay for energy depends on several factors:
- Energy exchange price – set at TGE and changing every hour.
- Energy consumption – the more energy you use during hours when the price is lower, the lower your bills will be.
- Additional charges – include distribution costs and trade fees.
The price of energy changes every hour, and the customer is billed based on his consumption in a given hour. By properly managing your consumption, you can reduce your electricity bills.
How to change the offer to dynamic tariffs?
If, after reviewing the risks and benefits, you decide to change to a dynamic tariff, there are a few simple steps you need to take to implement the new tariff.
1. Check your tariff group
The dynamic offer is available to customers who have a G1x tariff (e.g. G11). To check your tariff, just look at your latest energy invoice. If you have any doubts, you can contact the PGE Customer Service Office, which will help you determine whether you meet the offer requirements.
2. Install the remote reading counter
A dynamic tariff requires a meter that allows remote reading of energy consumption. These meters are installed by distribution system operators on schedule, but you can apply to expedite installation. This application can be submitted directly to PGE or your local energy supplier.
3. Accept the offer
From August 24, 2023, the dynamic tariff offer is available on the PGE website, at the Customer Service Office and by phone. To accept the offer, simply complete the appropriate form on the PGE website or contact the Customer Service Office by phone: 422222222.
4. Follow prices on the Polish Power Exchange
After accepting the offer, your bills will depend on energy prices on TGE. Stock exchange quotations can be checked on the TGE website in the “Day Ahead Market Fixing I” section or on the PGE website.
5. Monitor your energy consumption
As part of a dynamic offer, it is crucial to track your own energy consumption. PGE offers tools that enable you to monitor consumption and adjust it to current prices on the stock exchange. Thanks to this, you can consciously manage your energy consumption and optimize your costs.
Is settlement at dynamic pricing profitable?
The answer to this question depends on several factors. A dynamic tariff can save you money if you can adjust your energy consumption to the hours when prices are lowest. However, if you do not regularly follow stock market changes, you may find that your bills will be higher than with a standard tariff.
People who use devices such as energy storage or smart home systems can benefit more from a dynamic tariff because they are able to effectively manage their energy consumption. However, it is worth remembering that the decision to switch to a dynamic tariff should be preceded by a thorough analysis and understanding of both the benefits and risks associated with this solution.
