Dynamic electricity tariffs are new in Poland. From August 24, 2024, households can benefit from dynamic energy prices, adjusting their consumption to cheaper hours. Check how to save thanks to the new settlement rules!
In recent years, we have heard more and more often about the need for sustainable use of electricity and the rising costs of electricity. The amendment to the energy law, which entered into force on August 24, 2024, brings significant changes for Polish households. For the first time in history, individual customers can benefit from the so-called dynamic tariffs – a modern solution that allows you to adjust electricity costs to market prices in real time. But do these changes mean real savings?
Dynamic electricity tariffs are a completely new approach to settling accounts with electricity suppliers. Instead of the fixed rate we know from current offers, electricity prices may change throughout the day depending on the situation on the energy market. This means that the cost of energy can be significantly lower at night or during off-peak hours, but higher at times of increased demand. From August 2024, the obligation to offer dynamic tariffs applies not only to enterprises, but also to sellers serving at least 200,000 customers. households.
Dynamic electricity prices – what is it about?
With the amendment to the energy law in Poland, which entered into force on August 24, 2024, electricity sellers serving at least 200,000 end recipients must offer the so-called dynamic tariffs for households. This is a significant change because previously this form of electricity billing was only available to enterprises. For many Poles, dynamic tariffs may seem new, so it is worth taking a closer look at what they are really about and what benefits and challenges dynamic electricity prices bring.
What are dynamic tariffs?
Dynamic tariffs – as the name suggests – are a method of billing for electricity in which the price of electricity changes depending on various factors, primarily the current prices on the energy exchange. This is the opposite of classic tariffs, which usually have a fixed price for a certain period of time, regardless of how much energy costs on the market at that moment.
In the case of dynamic tariffs, individual consumers have access to energy prices changing in real time. These prices mainly depend on:
- Hours of the day – most often, electricity is cheaper at night because energy demand is lower.
- Seasons – in summer, when the demand for cooling increases, and in winter, when the demand for heating increases, prices may be higher.
- System load – during periods when the energy system is heavily loaded, prices may increase significantly.
- Prices on stock exchanges – dynamic tariffs are linked to the wholesale energy market, where the price is determined based on supply and demand.
In practice, this means that the price of electricity paid by consumers may change from hour to hour, or even every 15 minutes. The aim of dynamic tariffs is to better manage energy consumption in households and to increase users’ awareness of energy efficiency.
Why were dynamic tariffs introduced?
The main reasons why dynamic tariffs were introduced to energy sellers’ offers are related to several key factors:
- Sustainable use of energy – dynamic tariffs aim to promote more efficient use of energy. Customers who are able to adjust their energy consumption to times when electricity is cheaper can reduce their bills.
- Reducing system load – when all consumers use energy at the same, most expensive times, the energy system is exposed to overload. Dynamic tariffs encourage you to shift your consumption to hours when the load is lower.
- Savings for users – appropriate energy consumption management can bring tangible financial benefits for consumers, especially those who are able to flexibly adjust their energy consumption habits.
The introduction of dynamic tariffs is also the result of the requirements set by EU regulations related to the transition to green energy and the fight against climate change. Energy efficiency is one of the key elements in this fight, and dynamic tariffs are intended to help achieve it.
How do dynamic energy prices work?
Dynamic energy prices are directly linked to the wholesale electricity market, where the price of energy changes in real time. In Poland, the main wholesale energy market is the Polish Power Exchange (TGE), where electricity prices change depending on supply and demand.
Energy sellers who offer dynamic tariffs must provide individual customers with access to current energy prices and tools enabling real-time monitoring of electricity consumption. For this purpose, the so-called smart meters that can record electricity consumption with an accuracy of hours or even minutes. These meters can be read remotely, eliminating the need for manual reading by energy workers.
Who can benefit from dynamic tariffs?
Currently, dynamic tariffs must be offered by energy sellers who serve at least 200,000. end recipients. This means that large energy companies, such as PGE, Enea or Tauron, are obliged to introduce this type of settlements to their offers. However, whether a household chooses this form of settlement depends on the individual consumer’s decision.
To use dynamic tariffs, several conditions must be met:
- Having a smart meter – without it, it is not possible to accurately measure electricity consumption in short time intervals, which is the basis for settlements according to dynamic tariffs.
- Awareness of price changes – the recipient must be regularly informed about changes in energy prices and also have access to tools that will allow him to adjust his consumption to cheaper hours.
- Flexibility – dynamic tariffs work best in households that are able to adjust their energy consumption habits, e.g. by shifting the use of energy-intensive devices to night hours or off-peak hours.
Challenges of dynamic tariffs
Despite many benefits, dynamic tariffs also bring some challenges that both energy sellers and consumers must face:
- Price volatility – energy prices can change very dynamically, which may be difficult to predict for the average consumer. In extreme cases, this can lead to higher bills if you are unable to adjust your consumption to price changes.
- Need for monitoring – to effectively use dynamic tariffs, consumers must regularly monitor energy prices and respond flexibly to changes. Not every user has the time or inclination to track such information.
- Smart meters – not all consumers already have smart meters installed, which means additional costs related to their replacement.
Dynamic tariffs are a new and innovative form of electricity settlement, which is gaining popularity in Europe, and now also in Poland. For conscious users who are able to flexibly manage their electricity consumption, this may be a chance for real savings. However, it is worth carefully considering whether this form of settlement is suitable for our household.
