Dear Mr Bourke,
We are writing in response to two Irish Independent articles on dynamic electricity tariffs
- New electricity pricing system risks widening the energy divide, expert warns, and
- Dynamic electricity pricing: a gamechanger for cutting bills, or a handy add-on for those who need it least?
Europe has faced repeated energy crises in recent years, and consumers are increasingly turning to electricity to reduce their exposure to volatile fossil fuel prices. Dynamic tariffs are designed to support this transition by encouraging electricity use when power is abundant and cheaper, and reducing demand during peak periods.
Evidence shows these price signals work. Research based on Danish household data finds electricity demand falls by around 2-3% in response to hourly prices, with around one third of households actively adjusting their consumption. Importantly, meaningful savings do not require solar panels or an electric vehicle. Simple changes such as running washing machines, dishwashers or water heaters outside peak hours can reduce bills.
Even households that do not actively respond benefit. Lower peak demand reduces wholesale electricity prices, cuts reliance on expensive backup generation, and makes more efficient use of renewable electricity.
The challenge is therefore not whether dynamic tariffs are appropriate, but how to ensure all consumers can access them through smart meters, transparent tariff design and simple automated solutions.
A crucial point is enabling consumers themselves. Public information and clear guidance will help households to understand how dynamic tariffs work and build confidence and capability to use them to their benefit.
Kind regards,
Anna Conlan, Ireland Electrified & Adrian Hiel, Electrification Alliance