SME dynamic price plans

Dynamic electricity pricing is now in the Irish electricity market, all you need to know:

A Dynamic tariff is a new type of electricity tariff where the price of electricity changes throughout the day, reflecting how electricity is generated and used across the grid. A Dynamic Tariff plan will give you access to these 30-minute interval electricity unit rates.

Dynamic Tariffs are available via Electric Ireland’s contact centre and sales teams.  

Contact us to find out more or to switch to us at 1800 30 50 70 

What is a Dynamic Tariff?

Unlike standard plans with set day and night prices, a Dynamic Tariff updates the electricity unit rate every 30 minutes. When electricity is more plentiful, often when there’s lots of wind or solar energy, prices can be lower, when demand is higher, prices may rise. With Dynamic Tariffs, you will see the next day’s prices in advance, giving you the chance to plan when to use electricity. Until now, those changes would not have impacted you. Should you sign up to a Dynamic Tariff you will be able to see these half hourly prices reflected in the amount you pay for electricity. 

When there is a lot of renewable energy available, the wholesale price of electricity will be cheaper. Not only will that benefit your pocket, but you will also be contributing towards the reduction of carbon emissions as there will be less reliance on fossil fuels. By running appliances at lower priced times, you can take more control of your energy costs while supporting renewable energy on the grid.

Dynamic Tariffs are designed for customers who are comfortable with prices that vary and who can shift some of their electricity use to different times of day. Dynamic tariffs encourage households and businesses to use electricity when there is more renewable energy (like wind or solar) on the grid. By shifting your usage to greener times, you are not only supporting Ireland’s move to a low-carbon energy system but also helping reduce pressure on the national grid during peak times.

How pricing works on a Dynamic Tariff

Dynamic Tariffs separate the fixed costs of supplying electricity from the part of the price that changes with the wholesale energy market.

Dynamic Tariffs are made up of three parts:

1. Standing Charge This is a fixed daily charge. It covers the cost of keeping your home connected to the electricity network and maintaining the service.

2. Base Unit Rate This is the fixed part of the price you pay for each unit of electricity you use.

3. Dynamic Unit Rate This is the variable part of the price that changes during the day at 30-minute intervals. It reflects the wholesale electricity price and will be shared with you a day in advance, so you can plan your usage. To protect customers, price caps will apply so prices cannot rise beyond a set cap during extreme market conditions. Dynamic tariffs are designed to give you more flexibility over your energy costs, make our electricity grid more efficient and reduce Ireland’s reliance on fossil fuels.

How are dynamic tariffs different to regular smart tariffs?

With smart meter price plans you choose from a range of different time of use tariffs. These give cheaper electricity rates during off-peak times, usually overnight or during the day.

Although these day/night/peak tariffs offer cheaper rates during low-demand periods, the unit rates for different times are typically fixed. Even if the rates are variable, you will still know what you are paying for energy in advance.

While dynamic tariffs reward off-peak energy use with lower prices in the same way, there is less certainty over costs. You will only know the current wholesale price a day in advance of usage. Dynamic tariffs do have a price cap. This cap is currently set at €0.50/kWh.

What are the benefits?

Some of the key advantages of dynamic tariffs are:

 Lower energy bills

If you can move your energy usage to a low-demand time, you will be able to pay less for your electricity and lower your bills.

Environmentally friendly

Dynamic electricity pricing is better for the environment. It encourages you to use energy at times when demand is low and more renewable energy is available.

More control over energy costs

With a dynamic tariff, you have greater control over how much you spend on electricity. You can take advantage of the cheapest energy prices every day.

What are the risks?

Dynamic electricity pricing is not without its risks. Some potential risks include:

Price spikes

If wholesale electricity prices spike for any reason, you will be open to the sudden price rise. This would not be the case if you were paying a set price for energy on a regular tariff. 

Uncertainty over bills

With prices changing frequently, predicting your electricity bills in advance may be difficult. This might be problematic for businesses that like to budget for upcoming expenses.

Expensive for peak users

Does your business use a lot of electricity at peak times? If so, it might not be practical to shift all that energy usage to times when demand is low. This would put you at risk of buying most of your electricity when wholesale prices are at their highest.

Regular monitoring needed

To get the best value from a dynamic tariff, you will need to track and manage your electricity usage regularly. This could be difficult if you are already short of time.

What's required to get a dynamic tariff?