What is a Dynamic Electricity Tariff?

A Dynamic Electricity Tariff is a new electricity plan available from June 2026. With a standard tariff, you pay fixed rates for electricity used during Day, Night and Peak hours. With a Dynamic Electricity Tariff, the price of electricity changes throughout the day based on wholesale market prices. Customers on a Dynamic Electricity Tariff also pay a fixed base unit rate and standing charge.

How it works

The wholesale price of electricity changes every 30 minutes throughout the day. When demand is high, such as during the evening peak period, electricity costs more. When demand is lower, or more renewable energy is available, electricity costs less. 
By 2pm each day, the wholesale electricity prices for the following day are published. Customers on the Dynamic Electricity Tariff can view these prices in advance and choose to use more electricity during lower-priced periods to help reduce their costs.

 

PrepayPower’s Dynamic Electricity Tariff is made up of:

• Dynamic unit rate – this is the price of electricity, which changes every 30 minutes based on wholesale market prices. This component is capped at 50c per kWh.
• Standing Charge – this is a fixed amount paid daily, regardless of usage.
• Base unit rate – this is a standard flat unit rate, which will be different for Day, Night, and Peak hours.
• Prepayment Service Charge – this is 45.04 cent per day. This charge means we can maintain our service without charging you upfront set-up fees.
 

What are the benefits of a Dynamic Electricity Tariff?

Potentially lower bills
If you can monitor your usage and have the flexibility to move a significant majority of your electricity usage to cheaper times, you could potentially lower your bill. 
 

What are the risks of the dynamic electricity tariff?

Price spikes
Unlike with standard tariffs, dynamic tariffs do not provide protection from price spikes in the wholesale electricity market. This could drastically increase your bill. 
 

Unpredictable bills
Because a dynamic tariff changes every 30 minutes, it can be difficult to predict what your electricity costs will be from week to week or month to month. This type of tariff may not be suitable if you need to budget for your energy costs when topping up your PrepayPower meter.
 

Unsuitable for peak time users
Dynamic tariffs are generally considered unsuitable for people who tend to use most of their electricity during peak times when energy costs are higher. At times of exceptionally high prices, peak hours could reach as high as 82 c per kWh, including base unit rate and VAT.
 

Monitoring your usage
A dynamic tariff requires you to take an active approach to managing your energy use. You need to check daily wholesale electricity prices and keep an eye on how much electricity you are using. It also helps to be flexible so you can use electricity at cheaper times and avoid higher costs.
 

Eligibility
To sign up for PrepayPower’s Dynamic Electricity Tariff, you need a smart meter that can send your electricity usage data every 30 minutes. Your meter also needs to have a strong and reliable signal so this data can be sent to us.
We use a measure called a CTF (Comms Technically Feasible) score to check signal strength. To be eligible for the dynamic tariff, your meter must have a CTF score of 4.

 

Interested in a Dynamic Plan? Find out more