How flexible pricing models bring benefits
The electricity market is a market that is currently changing noticeably. 2025 will bring a period of strong movement thanks to changing electricity tariffs. More and more households are opting for tariffs whose prices are based on the stock market values on an hourly basis. Evaluations by the Federal Network Agency show that since spring these models have been consistently cheaper than many conventional fixed-price offers. The difference becomes particularly clear in hours of high feed-in from wind and solar systems, when the market price falls noticeably and costs immediately fall.
1. Why the results are reliable
What is striking is that the authority did not assume any optimized usage behavior in the underlying comparison. A typical household was analyzed that consumed electricity as usual without specifically shifting consumption.
Even under these everyday conditions, variable tariffs often remain cheaper than fixed prices over a year. This shows that price advantages not only arise for technology fans, but also apply when households continue their everyday lives unchanged.
2. Reasons for the current price development
A key trigger is the significantly greater transparency on the wholesale market. Variable tariffs react immediately: If the price on the stock exchange falls, the end customer price also falls. As renewable generation leads to more and more low-cost hours, households that choose a flexible tariff particularly benefit.
Since 2025, every supplier must provide at least one dynamic offer. This expands the choice for many and at the same time increases competition between providers. As a result, variable models continue to become more attractive.
3. How flexible plans work
In contrast to classic contracts, dynamic models calculate the price based on hourly market values. This requires a digital electricity meter that precisely records consumption. A consistent fixed price is no longer billed, but rather the actual value of each hour.
This is particularly advantageous for households that have controllable consumers. Devices such as heat pumps, electric cars or intelligent household appliances can easily be set so that they run automatically when electricity is cheap.
4. Opportunities – and points to consider
Experts see variable tariffs as an important instrument for a supply system with a high proportion of renewable energy. If consumption is shifted specifically or automatically, load peaks decrease and wind and solar power are better utilized.
Regardless, the market remains susceptible to fluctuations. Stock market prices react sensitively to weather conditions, electricity supply and demand. There is also the question of how many households are willing to use control functions or have their consumption adjusted.
5. Practical benefits for households
Anyone who owns a smart meter can already benefit from flexible tariffs today. Households with larger consumers in particular can save without much effort. Many settings can be controlled automatically, so no daily planning is necessary.
Judith Stute and Matthias Kühnbach from the Fraunhofer Institute emphasize the benefits in their studies: “We show that today’s dynamic tariffs in conjunction with an energy management system are attractive for households with flexibility options.”
6. Growing acceptance through noticeable savings
Many consumers switch to flexible tariffs out of curiosity – and stay because the monthly costs actually fall. Modern systems make complex decisions easier for the user, which makes it easier to get started.
The previous image of tariff models that were difficult to understand is increasingly disappearing. As digital meters become more widespread, so does confidence in flexible pricing.
7. Looking ahead: Potential to become a new standard
Germany is heading towards an electricity system in which feed-in fluctuates more than before. Variable tariffs fit these conditions because they transparently reflect supply and demand. This creates more leeway for both suppliers and households.
As digital measurement technology continues to expand and automated control becomes more widespread, the variable price model could soon become the norm. This would be an opportunity for households to take advantage of permanently cheaper electricity prices and to better manage their own consumption.