Brussels energy suppliers can offer dynamic electricity tariffs

Since the beginning of this month, Brussels energy suppliers have been able to offer dynamic electricity contracts, meaning that customers pay according to the electricity prices per hour on the energy market, which fluctuate at different times of the day.

However, none of the current suppliers is yet to launch a dynamic pricing option - and if they decide to do so, these contracts will not be available for everyone – as customers need to meet several conditions.

In other countries, including the Netherlands - where this option is taken up by 5% of the population - and also in Flanders, dynamic energy contracts have been available for some time.

They differ from fixed contracts, where the price per kWh (kilowatt hour) is fixed in advance for a certain period, usually a year, and from variable contracts, where the rate is adjusted monthly or quarterly.

In practice, this means lower prices during off-peak hours, such as at midday and overnight, and more expensive rates at peak times, such as early evening.

“At 12 noon, when the sun is shining and there is little energy consumption, we can have very low or even negative rates,” said Pascal Misselyn, director of Brugel, the Brussels energy regulator.

“On the other hand, in winter, at around 17.00, when it is dark, when there are a lot of requests, when everyone is returning home, and there is still a lot of activity going on in companies, the rates are higher,” he added.

For customers who opt for a dynamic contract, the monthly electricity bill takes account of price trends day by day, hour by hour, at the time the energy is consumed. This means that bills can vary greatly from month to month and from season to season.

Misselyn said that dynamic energy contracts are interesting for private individuals who mainly consume energy during off-peak hours and are happy to do all the cooking and household chores or charge their electric car at lunchtime, when there is more chance that the sun shines.

But for many families, who mainly consume electricity during peak hours, a dynamic rate will not be so worthwhile. And for in-between cases, opting for dynamic tariffs will only be sensible if people are willing to change their energy consumption habits, and carry out electricity-consuming tasks when electricity is not so much in demand.

“If you’re not capable of really changing your habits, the dynamic tariff will not be worth it,” Misselyn added.

Solar panel owners will also not benefit from dynamic pricing, Misselyn said, as “they have to pay a higher price for electricity when the panels are not generating electricity. That makes it less attractive compared to the price of the current fixed and variable contracts.”

Anyone who wants to conclude a dynamic energy contract must also fulfil a number of requirements. What is essential, said Misselyn, is the installation of a smart meter connected to a telecommunications network. This makes it possible to transfer the consumption data to the energy supplier.

In Brussels, residents must allow consumption data to be shared with electricity network operator Sibelga, according to the company’s website.

It remains to be seen which companies will offer dynamic contracts. It is also unlikely that all suppliers offering such contracts in Flanders will immediately extend the option to the capital.

Belgium’s main electricity supplier Engie launched the new, flexible electricity contract "Empower Flextime" on 1 June, saying it will result in 45% lower prices in “super off-peak hours”, for example overnight between 1.00 and 7.00. However the contract is currently only available in Flanders.

The company underlined that this contract requires a smart meter, and argued that Brussels and Wallonia are still lagging behind in that area.

Ultimately, while trumpeted as a good option if you can, the dynamic contract is only likely to impact a very small number of consumers. In 2023, 0.1% of Belgians (in Flanders) opted for this method. However, rates are rising with twice as many consumers choosing these contracts one year later, in 2024.

This is because the advantages of choosing dynamic tariffs, and of adapting electricity consumption, accordingly, can be impressive: “You can end up with a bill that is 10%, 15% or 20% lower than by using other contracts, but with the risk that at times there will be increases,” Misselyn said.

“And If you’re really savvy, if you’re a bit of a geek, if you have a phone on which you can instantly monitor your consumption, and virtually run your washing machines or your dishwashers remotely, you could save €100, €200 or even €300 over the course of a year.”