Normally, lower purchase prices on the electricity market are not passed on to end customers by suppliers. The first providers are now offering dynamic electricity contracts with which consumers can participate in price fluctuations.
Lower purchase prices are usually not passed on
With an increasing share of renewable energies in the German energy mix, electricity prices will also be subject to greater fluctuations in the future. This is due to the inherent volatility of renewable energies, which are very dependent on weather conditions. If the price rises during consumption peaks and lower supply due to dark lulls, there is also the opposite case, when prices on the electricity exchanges fall due to an oversupply of electricity. In this case, long-term supply contracts result in attractive price differences between the purchase and sales price for electricity providers, which are usually not passed on to the customers, but are pocketed by the providers themselves. In order to better involve customers in price fluctuations, there have recently been providers of so-called dynamic electricity tariffs, which better reflect the actual electricity price and can reduce electricity prices for consumers.
According to the draft law: From 2025 dynamic tariffs are mandatory
Dynamic electricity tariffs are electricity tariffs that have different prices depending on when electricity is consumed. Unlike traditional electricity tariffs, where the price per kilowatt hour stays the same over a longer period of time, dynamic electricity tariffs vary based on supply and demand on the grid electricity market. By using dynamic electricity tariffs, consumers can reduce their energy costs by shifting their electricity consumption to periods with lower tariffs. At the same time, this can help keep the power grid stable by avoiding peak loads. According to a draft law by the Federal Ministry of Economics and Climate Protection to “restart the digitalization of the energy transition”, which was decided by the Federal Cabinet at the beginning of January, all electricity suppliers are to be legally obliged to offer their customers dynamic tariffs from 2025. Currently, only large electricity suppliers who supply more than 100,000 consumers have to offer dynamic electricity tariffs including an intelligent metering system.
Hamburg start-up already offers dynamic tariffs
One company that already offers flexible electricity tariffs is the Hamburg start-up rabot.charge. On its website, the company advertises that it can reduce electricity costs for its customers by up to 35 percent. According to the website, the electricity is bought on a daily basis and passed on directly to the customer at the purchase price. Customers can use an app to track their consumption and view real-time data. E-car owners can charge their vehicles at precisely the times when the electricity price is cheapest. The company’s algorithm analyzes the current prices on the electricity exchange and automatically starts charging the e-car when prices are particularly low. The company charges a monthly basic fee of EUR 4.99 for its services. In addition, a company bonus of 20 percent of the realized electricity cost savings is charged.
Editorial office finanzen.net