ARTICLE
2 May 2025

Dynamic Pricing

PK
Prokurent

Contributor

Founded in 1989 in Warsaw by Grzegorz Choina and Jan Rostafiński, Prokurent Law Firm has grown into a premier legal advisory partnership. With a legacy spanning decades, the firm’s team of seasoned attorneys and legal advisors provides comprehensive legal solutions tailored to clients' evolving needs.

Prokurent specializes in serving businesses, housing cooperatives, NGOs, and individuals, offering expertise across diverse legal areas, including corporate law, real estate, securities, and niche fields like agricultural and cooperative law.

The firm’s strength lies in its personalized approach, blending extensive experience with an adaptive understanding of market and legal dynamics. Guided by the founding partners' vision and bolstered by talented alumni, Prokurent remains a trusted advisor for clients navigating the complexities of modern law.

Dynamic pricing (or repricing) is the process of automatically setting the prices of products and services based on various factors, such as market conditions, customer preferences, or competitor prices.
Poland Energy and Natural Resources

Dynamic pricing (or repricing) is the process of automatically setting the prices of products and services based on various factors, such as market conditions, customer preferences, or competitor prices.

Depending on the volume of energy, Trading Companies shape their offers based on wholesale prices accepted in different calculation periods, which can be divided into three basic groups:

  1. fixed, applicable throughout the entire billing year, contracted on the Forward Market of Polish Power Exchange.
  2. variable based on the average periodic prices of the Day-Ahead Market, listed on Polish Power Exchange.
  3. variable based on hourly prices of the Day-Ahead Market, listed on Polish Power Exchange, known as dynamic pricing tariffs.

The planned broader implementation of contracts with dynamic pricing will allow for setting electrical energy prices for the end consumer based on hourly price listings on the Day-Ahead Market.

Advantages of dynamic pricing tariffs:

  • they create the possibility of reducing costs for electrical energy consumers who can manage their energy consumption and adjust it to the current market price levels and flexibly adapt energy usage to price signals from the market.
  • the widespread adoption of such contracts may positively impact the optimization of consumer energy costs and maintain market stability in the area of balancing energy supply and demand.
  • this type of settlement system received a positive recommendation from the Council of European Energy Regulators because it allows for market-based balancing of demand and supply according to hourly energy prices,
  • it creates a system of market incentives for activity within the demand-side management service based on the hourly demand profile,
  • forecasting and managing hourly demand, based on price signals from the Day-Ahead Market, should provide added value compared to the current tariff group system.

The ability to store energy by the consumer will be crucial for the profitability of using contracts with dynamic pricing. This will allow for minimizing energy consumption from the grid during the so-called peak period. Moreover, in the case of prosumers, i.e., consumers actively participating in the market, smart meters will enable flexible adjustment of production and consumption levels to price fluctuations within a given time frame.

From August 24, 2024, the largest electrical energy suppliers in Poland will be required to offer energy purchases in this settlement model even to households

Sources:

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More