How do dynamic electricity tariffs work?
Dynamic electricity tariffs are coming to Ireland in 2026. Find out how they work, how they compare to standard plans, and whether you could save with real-time pricing.
What are dynamic electricity tariffs?
A Dynamic Electricity Tariff (DETs) is a new type of Time-Of-Use (ToU) smart plan with prices that fluctuate hourly or half-hourly, to reflect real-time electricity costs on the wholesale market.
Similar to other ToU plans, the cost of your electricity will change depending on when you use it; for example, it may be cheaper overnight or during times of low demand, but more expensive during peak evening hours.
Unlike standard ToU tariffs, which have set energy costs for specific periods e.g. ‘Day’, ‘Night’ and ‘Peak’, Dynamic Tariffs:
This allows you to use energy when it is cheaper, renewable-based and more plentiful, and so save on your bills.
To avail of a dynamic tariff, you’ll need a smart meter that can track your electricity usage in half-hourly intervals.
Why are they being introduced?
Ireland is aiming to generate 80% of its electricity from renewables by 2030 so smarter, dynamic pricing will help to create a more flexible, low-carbon electricity system.
By encouraging customers to use electricity when it’s cleaner and cheaper, DETs reduce strain on the grid, lower emissions, and support more efficient use of renewable energy.
Other countries, like the UK, Sweden, and parts of the US, already offer dynamic pricing models to help customers cut costs and reduce their environmental impact.
When are dynamic tariffs launching?
Though dynamic tariffs were originally set to launch in Ireland in October 2025, they have been delayed until June 1st, 2026.
This gives suppliers more time to prepare, and ensures that smart meter infrastructure is ready to support these new tariffs.
How will dynamic pricing work?
If you’re on a dynamic electricity tariff, suppliers must let you know the half-hourly cost of your electricity, 24 hours in advance.
This is known as ‘day ahead’ pricing, and allows you to plan ahead, adjust your usage and take advantage of cheaper energy.
For example:
How will you be charged?
Although wholesale prices can drop very low, sometimes to zero, your bill will still have fixed costs, so you will still pay something even if the dynamic tariff falls to zero.
Under a dynamic electricity tariff, your bill will likely have three parts, two of which are fixed, and one of which is the dynamic price that tracks the wholesale price of electricity.
It will include:
- Standing charge: a fixed daily cost for being connected to the electricity network.
- Base unit rate: the standard part of your electricity rate.
- A dynamic unit rate: the part of your electricity price that changes daily, depending on the market.
Will dynamic rates be capped?
Yes, suppliers must protect consumers from extreme price spikes by capping how high prices can go, as well as sending alerts about impending spikes.
While your bill may vary from day to-day, the cap helps limit how much you could be charged during price peaks in the wholesale market; for example, during a cold winter evening with low wind generation.
Although rates are capped, you don’t shift your energy use to discounted hours, your bill could end up higher than before.
Could you still end up paying more?
Though price caps will protect consumers from very high rates, if you don’t shift your energy use to off-peak hours, you could end up paying more than a standard plan.
Households with less control over their energy use, for example, large families that must use appliances in the evening, may find flat-rate plans more reasonable.
If you can run appliances during off-peak periods, charge your EV, overnight however, or use timers and smart plugs to automate usage, you could save money.
Adding solar panels or home batteries can boost your savings even further - you’ll find more information in our comprehensive guides on solar panels, solar batteries, and heat pumps.
How much can you save?
While dynamic electricity tariffs haven’t launched in Ireland yet, calculations show that households could save up to €587 a year by switching to the cheapest available Time-of-Use tariff.
Research by The European Consumer Organisation reveals households in other EU countries saved up to 38% on annual electricity bills by switching to a Dynamic tariff, depending on how and when they use energy.
The EU data shows:
Electricity tariff types explained
From standard tariffs to fully dynamic pricing, each option offers different levels of flexibility and potential savings.
Here’s a quick comparison of the main tariffs-types:
| Tariff Type | Price Structure | Overall price fluctuations | Flexibility | Savings Potential | Example | |
|---|---|---|---|---|---|---|
| Standard Tariff | Fixed rate per kWh, all day | Few times a year | Low, no incentive to shift use | Limited | Washing clothes costs the same at 3 pm, or 3 am | |
| Time-of-Use (ToU) | Set day/night/weekend rates | Few times a year | Moderate, must shift use to off-peak | Moderate - High | Run dishwasher at night to save | |
| Dynamic Tariff | Price change half-hourly, based on wholesale rates | Daily | High, must adjust use based on price | Highest, with smart use | Delay EV charging until prices drop |
Our smart plan guide also compares the different types of ToU, Standard and Dynamic smart plans, while you can read our guide how to switch energy plans to find out more on switching.
Which suppliers will offer dynamic electricity tariffs?
The Commission for Regulation of Utilities (CRU) has mandated that all electricity suppliers with more than 200,000 customers must offer a dynamic electricity tariff to their customers by June 1st, 2026.
These suppliers include:
Other suppliers can offer dynamic tariffs if they choose, but won’t be obligated to right now.
For more information on smart plans, read our comprehensive smart plan guide and find out how to switch to one that best fits your lifestyle.
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Are dynamic tariffs worth it?
While dynamic tariffs can offer real savings, they also mean less predictable bills, exposing households to price uncertainty and the risk of higher costs during peak periods.
To get the most out of DTs, you’ll also need to stay engaged; checking prices daily and understanding when it’s cheapest to use electricity.
Here’s a quick look at the main benefits and potential drawbacks of dynamic pricing.
Pros
Cons
So when should you consider a dynamic electricity plan?
Dynamic tariffs aren’t for everyone, but they can offer real savings if your lifestyle or tech setup fits.
A dynamic tariff might be:
A smart choice
If you’re ready to make the most of cheaper, off-peak electricity with a bit of flexibility.
- You have a smart meter and are comfortable tracking usage
- You own an EV, use a heat pump or have smart home devices
- You can automate energy usage or shift it to off-peak times
Not right for you
If you prefer stability in your energy bills or your usage patterns are harder to shift.
- You need predictable monthly bills
- You use most electricity during peak times (evenings/weekends)
- You don’t have time to monitor prices or adjust usage
Comparing dynamic tariffs
Because the unit rate changes daily, dynamic electricity tariffs might seem harder to compare than standard or Time-of-Use plans.
While suppliers can’t predict future dynamic prices, when Dynamic Tariffs are launched here, you can compare fixed or more predictable costs like:
Suppliers offering dynamic tariffs might also show sample dynamic unit rates to help you understand how pricing works in real life, by providing:
- Past daily or hourly rates from previous weeks or months
- Example rate ranges, e.g. “Prices have ranged from -2c to 35c per kWh in the last 30 days”
- Estimated average rate over a typical billing period
- Real-time pricing tools via app or portal, once you’re signed up
Switch and save on your energy bills
It only takes a few minutes to find a cheaper deal and start saving
Smart homes and dynamic tariffs
Smart homes - a house fitted with many smart, WiFi-enabled devices - are a natural fit for dynamic electricity and Time-of-Use tariffs, as they allow you to automate your energy use to take advantage of lower electricity prices.
With devices like smart plugs, appliances and thermostats, you can schedule usage around cheaper, off-peak times often without lifting a finger.
Some more advanced smart appliances or apps can automatically respond to real-time or day-ahead price signals, helping you easily reduce your bills without constant monitoring.
For example, a washing machine can delay its cycle until prices drop, or an electric vehicle (EV) charger can automatically top up during hours of excess renewable supply when rates are lowest.
Read our guide on How to build a smart home for tips on smart appliances, automation, and how to future-proof your home.
Top tips to make dynamic tariffs work for you
If you’re thinking of switching to a dynamic electricity tariff, here are some practical ways to get the most out of it and avoid higher bills:
- Track prices daily: Use your supplier’s app, portal or alerts to stay informed about the day-ahead rates.
- Shift your usage: Run high-energy appliances like EVs, ovens, dishwashers, washing machines or tumble dryers during low-cost hours.
- Automate when possible: Use smart plugs, timers or a full smart home system to automatically shift usage based on price signals.
- Compare suppliers carefully: Check standing charges, fixed unit rates and how each supplier applies dynamic pricing; some may add a markup to wholesale rates.
- Monitor your bills: Keep an eye on your monthly usage and costs to make sure the tariff is still working for your lifestyle.
With a little planning and the right tecnhology, dynamic tariffs can lead to meaningful savings, especially for households with flexible routines or smart home setups.
