Electricity Price Dynamics Could Potentially Save Hundreds of Euros per Year
Switching to a Dynamic Electricity Tariff: A Cost-Saving Opportunity for Households with Electric Vehicles and Smart Meters
In an analysis of 20 dynamic electricity tariffs across Germany, Finanztip has identified four favourable options for consumers: SimplyDynamic from Ostrom, Volkswagen Naturstrom Flex, naturstrom smart, and dynamicOctopus from Octopus Energy.
Starting from 2025, all electricity suppliers in Germany will be obligated to offer dynamic electricity tariffs to their customers. These tariffs determine the unit price hourly or quarter-hourly, with mornings and evenings typically being expensive hours for private households. However, by charging electric vehicles during favourable times with a dynamic tariff, households can save approximately 300 euros per year.
The benefits of dynamic tariffs extend beyond just electric vehicle owners. Households with smart meters, heat pumps, or high electricity consumption may also see significant savings. The key to maximising these savings is flexible management of electricity consumption, ensuring most of it can be shifted to favourable price slots.
For households without flexible electricity consumption, dynamic tariffs may not be beneficial due to the risk of high wholesale electricity prices outweighing the benefits. It's essential to consider a short minimum contract term of no more than one month when considering a dynamic tariff.
Finanztip energy expert, Benjamin Weigl, advises the use of intelligent controls or apps to optimise heat pump usage and electric vehicle charging. He also suggests that consumers check the next day's electricity prices, which many electricity providers display in an app or customer portal in the afternoon.
The pure provider costs for these four tariffs for a consumption of 5,000 kilowatt hours range from around 110 to 290 euros per year. It's important to note that grid fees, taxes, and levies remain the same for all providers under dynamic electricity tariffs.
As the rollout of smart meters and iMSys (intelligent metering system) continues in the coming years, millions of households will be equipped with the necessary technology to take advantage of dynamic electricity contracts. For households looking to save on their electricity bills, a dynamic tariff could be a worthwhile consideration.
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