Uptake of dynamic pricing options will benefit from broader reforms to the costs being put on energy bills, Eurelectric has in new research.
Dynamic pricing refers to retail electricity prices that pass through at least part of the wholesale price volatility to final end users. The policy paper acknowledged that the development of dynamic pricing offers would be dependent on the progress of the smart meter roll-out. However, if the data from smart meters could be harnessed, dynamic pricing could create a cohesive link between retail and wholesale markets, potentially driving cost savings.
Eurelectric also argued that policy costs like supporting renewables should be taken off energy bills and funded through alternative mechanisms.