05/10/2022

Explained: Hybrid Dynamic Tariffs

Explained: Hybrid Dynamic Tariffs

Hybrid Dynamic Tariffs… it’s a mouthful. But what does it actually mean? Unlike much of the industry jargon, this one has quite a significant impact on businesses, especially during the current energy pricing crisis.

At Wattstor, we believe hybrid dynamic tariffs are the future. This explainer focuses on debunking the concept to help you understand this revolutionary approach to the markets:

This infographic explains the three aspects of a tariff and what is a hybrid dynamic tariff

 

 

 

 

Infographic text for accessibility:

What is a Hybrid Dynamic Tariff?

This short explainer breaks down the elements for easy understanding:

Tariff:

A tariff is the pricing structure an energy supplier will provide to an individual or business that dictate how much they will pay/be paid and under what terms. There are hundreds of nuanced types of tariff, some for supply only, some for selling energy back to the grid, some tariffs are standard, some businesses negotiate bespoke tariffs.

Dynamic tariff:

The dynamic aspect of a tariff refers to pricing fluctuating with the markets. Why would anyone want to dice with the unknowns? Well, more often than many people realise, the markets can provide decent return on investment when using an intelligent, forward-looking optimisation engine. The uncertainty isn’t for everyone, and can make financial planning somewhat difficult, but for those willing to ride the wave there’s potential for huge net-savings and even profits.

Hybrid dynamic tariff:

Take what we love about a dynamic tariff: the opportunity to save significantly and generate new profits from the energy markets. Now remove the uncertainty around pricing.

How? Wattstor clients are able to migrate to a tariff that enables which eliminates the risks of wholesale supply prices, while maintaining wholesale market trading access. The customer continues to be billed as normal at their p/kWh rate whilst receiving a payment at the end of each month for the trading benefit that is achieved on top of their standard solar shifting.

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