Shortly before introduction, half of Germans have never heard of dymamic electricity pricing – survey

Half of German households have never heard of dynamic power pricing, only months before it will be introduced in the country. In a survey by consumer organisations federation vzbv, 53 percent of respondents said they had not heard of the concept. A further 26 percent said they had heard of dynamic tariffs but could not explain them. Energy suppliers will have to offer dynamic electricity tariffs from the start of 2025.

“With dynamic electricity tariffs, consumers can participate in the energy transition and benefit directly from favourable electricity prices on the exchange. However, there is still a huge lack of information among many consumers,” says the vzbv’s Jutta Gurkmann.

Dynamic electricity tariffs enable consumers to benefit from the fluctuating electricity prices on the wholesale market over the course of the day. Instead of paying a set monthly fee, under a dynamic contract the price for electricity drops whenever supply is plentiful. The consumer advocates said the new tariffs could help many households to save money on their electricity bills, adding the government should ensure people have sufficient information to understand the system.

Vzbv said households with electric cars, heat pumps and battery storage could benefit in particular from the new tariffs. But the group added that many dynamic tariffs lacked transparency about price formation, making comparisons difficult for consumers. The lobby group called for tariffs that include a price cap to shield consumers from “exorbitant” price increases. “That would make dynamic tariffs attractive for further sections of consumers,” Gurkmann said.

In order to benefit from dynamic electricity pricing, households need a smart metering system that records electricity consumption in real time and transmits it to the energy supplier, but only few households already have the devices. According to a separate vzbv survey, more than 60 percent of households are in favour of installing smart meters. The lobby group said that an increase in the upper price limit for the installation, planned by the economy ministry, would undermine confidence.

“With the planned price increase, the economy ministry is making it more difficult to use this system for consumers who do not have a photovoltaic system, heat pump or electric car charging station. It is thus gambling away important trust in an affordable energy transition.”