From Sunday 1 June, it will be possible for energy suppliers to offer dynamic electricity contracts in Brussels. Under such contracts the price usually varies hourly based on prices on the energy market. However, in order to be able to sign up to such a contract customers must meet some conditions.
In Flanders, dynamic energy contracts have been available for a while. Prices usually vary hourly according to the prices on the energy market. If you have a fixed contract, the price per kWh is fixed in advance for a certain period, usually a year. With a variable contract, the tariff is adjusted monthly or quarterly.
In practice, that means lower prices during off-peak hours such as at noon and more expensive tariffs at peak hours. ‘Around 5pm, for example, when a lot of people come home from work but there is still a lot of activity at companies, prices will be higher,’ Pascal Misselyn, director of Brussels energy regulator Brugel, told reporters.
Not for everybody!
Dynamic energy contracts are not the best choice for everyone. According to Misselyn, it is particularly interesting for private individuals who mainly use energy during off-peak hours. This could include people who want to recharge their electric cars at these times.
For traditional households, which mainly consume electricity during peak hours, a dynamic tariff seems less appropriate. A lot depends on the willingness to change one's own habits in terms of energy consumption, Misselyn stresses.
The same goes for owners of solar panels. ‘A dynamic contract means they have to pay a higher price for electricity when the panels are not generating power. That makes it less attractive when compared to the price of current fixed and variable contracts.’
Conditions apply
People wishing to sign up for a contract with flexible hourly rates must also meet some conditions. A smart meter connected to the telecommunications network must be installed. This enables the transmission of consumption data to the energy supplier.
In Brussels, it is also mandatory to give permission to share consumption data with Brussels network operator Sibelga.
Suppliers in the capital can market dynamic contracts from 1 June. Which companies will do so remains to be seen. Not all suppliers currently offering such contracts in Flanders will immediately extend the option to the capital.