In other countries, dynamic electricity tariffs are common practice. In Switzerland, however, we usually only know the double tariff, colloquially known as the high and low tariff, and in some regions the standard tariff. In other words, you either have two tariff zones or just one. In Germany and Nordic countries there are dynamic electricity tariffs – in Switzerland the first dynamic electricity tariff will now be available from 2024.
How is the electricity tariff actually made up?
In order to explain the dynamic electricity tariff, you need a basic understanding of how the electricity price is actually made up. To do this, I took my price for 2024 and divided it into the various components. You can see that the energy price makes up the largest part at 63%. Network usage is also still very dominant at 20% and other charges are in the single-digit percentage range.
Composition of electricity prices in Switzerland
Dynamic electricity tariffs in Germany and Nordic countries
Dynamic electricity tariffs are electricity tariffs in which the electricity price is based on supply and demand on the electricity market in real time. In contrast to traditional electricity tariffs, the prices of dynamic tariffs can change within hours or quarter of an hour. The price is determined by the electricity exchange – a marketplace where electricity traders buy and sell electricity. This means dynamic electricity tariffs change every 15 minutes or every hour and are often published the day before.
First dynamic tariff in Switzerland: Vario tariff from Groupe-E
In Switzerland, the energy company Groupe-E, which is active as a distribution network operator in the Friborg / Neuchatel region, is the first to launch a dynamic tariff. Unlike our northern neighbors, the energy price is still fixed annually, but grid usage is dynamic. This is done to relieve the load on the network or to adjust the price to the network load. The higher the network load, the higher the price. Every day by 6 p.m. at the latest, Groupe E publishes the prices for each 15-minute period of the following day.
Network load load forecast defines electricity price
Who can benefit from this tariff?
In Switzerland we do not have a liberalized electricity market for “small consumers”, so I cannot choose my provider myself. Anyone who is connected to Groupe E’s distribution network and consumes less than 100,000 kWh per year can choose the Vario tariff. Of course, it only makes particular sense if a tariff that changes every quarter of an hour can also be used. This is worth it if you have flexible loads that you can control well. Such as an electric car, hot water boiler or even a heat pump. Accordingly, energy management systems such as Solar Manager are of course predestined here.
Dynamic prices integrated into the HEMS promise a lot of optimization potential
Conclusion
I am convinced that we are only at the beginning of such models in Switzerland and that there is a lot of potential hidden here. The expansion of renewable energies demands a lot from the grid and is currently often solved simply by expanding copper lines. With models such as dynamic tariffs based on network load, they are trying to get some intelligence into the network and I am convinced that this helps. Electric cars in particular with their large batteries are ideal loads that can be staggered in order to charge them.
The group of people who can benefit from such a tariff is currently still small. Would you switch to a dynamic tariff if your distribution network operator offered one as an optional tariff?