Dynamic price plans
Dynamic electricity pricing is coming to the electricity market in Ireland this summer, all you need to know:
A Dynamic tariff is a new type of electricity tariff and will be launching in Ireland in June 2026. A Dynamic Tariff is a smart electricity plan 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.
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. That is about to change. Soon you will be able to see these price changes reflected in the amount you pay for electricity.
When there is lots 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 current wholesale price a day in advance of usage. Dynamic tariffs do have a price cap. This cap is set by market conditions and may change from time to time.
What are the benefits of dynamic tariffs?
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 of dynamic electricity pricing?
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 households that like to budget for upcoming expenses.
Expensive for peak users
Does your household 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 does a customer need to move on to Dynamic Tariffs
To get a dynamic tariff, you’ll need a smart meter that can track your electricity usage in half-hourly intervals. Your smart meter will need to have a CTF (Communications Technically Feasible) score of 4 for you to avail of a dynamic tariff. A CTF score of 4 means your meter has a strong, reliable signal. This is important because dynamic tariffs need accurate, up-to-date readings to work properly. Customers will also need to have an online account with Electric Ireland and be on e-billing.
If you have all these things, you will soon be able to move to a dynamic tariff in the same way you would switch to any other smart meter plan.