What is a dynamic electricity contract?
A dynamic electricity contract links your household rate to wholesale day-ahead market prices that change every hour (or every 15 minutes). Instead of one fixed €/kWh for months, you pay more when the market is expensive and less when it is cheap. Prices can even go negative.
You still pay supplier markup, taxes and grid charges on top of wholesale. The dynamic part is the energy commodity; the rest is usually more stable.
How prices are set
In the Netherlands and neighbouring markets, day-ahead auctions publish prices for each hour of the next day, typically around midday. Those wholesale prices (often in €/MWh) are converted to €/kWh and combined with your supplier's formula.
Apps like Dnamiq read those published prices from transparency platforms (such as ENTSO-E) and turn them into practical household decisions. They do not replace your electricity bill.
Who benefits
Dynamic tariffs reward flexible consumption: charging an electric car overnight, dishwashers and washing machines that can wait, and heat pumps or batteries that can shift. If almost all your use is fixed during peak evening hours, a fixed contract can be simpler.
- Flexible loads (electric car, appliances) → higher potential value
- Little flexibility → smaller benefit, more price risk
- Solar export and saldering rules still matter separately
FAQ
- Is a dynamic contract the same as a spot contract?
- In everyday language yes: both follow short-term market prices. Exact formulas differ by supplier.
- Does Dnamiq sell electricity?
- No. Dnamiq is a decision and planning app. Your supplier still delivers and bills power.