New electricity rules 2025. Life in Germany. Starting January 2025, electricity providers in Germany must offer dynamic tariffs by law. These tariffs let households adjust their energy use based on changing prices, helping them save money. This article explains how these tariffs work and how they could impact your electricity bills.
What are dynamic rates?
Dynamic energy tariffs adjust based on supply and demand throughout the day. For instance, prices drop at noon when solar energy production is high but rise in the evening when demand increases, and renewable energy is less available.
This system allows consumers to save money by shifting their energy use to cheaper times, such as running a washing machine or charging devices during periods of surplus renewable energy.
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Previously, energy providers used a fixed average price, regardless of when energy was consumed. With the new tariffs, users who can adapt their energy habits flexibly now have the chance to reduce their bills.
New obligations for suppliers
Dynamic tariffs are regulated under the Electricity and Gas Supply Act (Energiewirtschaftsgesetz – EnWG). According to Section 41a, Paragraph 2, energy providers with more than 100,000 customers must offer these tariffs. However, this option will only be available to households that have a smart meter installed.
Smart meters, the key to dynamic tariffs
To take advantage of dynamic tariffs, households need a smart meter. This advanced device tracks energy usage in real time and sends the data to the energy provider. Smart meters enable prices to be adjusted based on specific time intervals.
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The rollout of smart meters, crucial for enabling dynamic tariffs, is experiencing delays in Germany, says Sandra Rauch, a digital expert at E.On. “Compared to other European countries, Germany should be much further along in adopting smart meters,” she noted.
Purpose of the new measure
The introduction of smart meters and dynamic tariffs aims to make better use of renewable energy and support the shift to a more sustainable energy system. Consumers who embrace these changes could save money while helping the environment.
However, it’s unclear how households will respond to this shift. While the new regulation presents significant savings and efficiency opportunities, its success will depend on how widely smart meters are adopted and whether consumers are willing to adjust their energy usage habits.