What is the difference between flexible and traditional billing?

The difference between flexible billing and traditional billing is significant and affects both the setting and consumption of electricity prices.

Traditional billing involves a fixed electricity price that applies throughout the day, regardless of the time. This provides stability but does not reflect the actual costs of delivering electricity at different times.

On the other hand, flexible billing entails a dynamic price structure where electricity prices vary throughout the day based on market conditions such as supply and demand. Prices can be higher during periods of high demand and lower during periods of low demand.

This incentive motivates consumers to adjust their electricity consumption and shift it to times with lower prices in order to achieve savings.

Flexible billing also benefits the integration of renewable energy sources by reflecting the availability of solar and wind energy in the prices. Consumers can consume more electricity when abundant renewable energy is available and consume less during periods of low production.

Lastly, flexible billing offers a more dynamic and market-based approach to pricing electricity, which can provide economic benefits to consumers and contribute to a more efficient utilization of the electricity grid.

Differences between flex and fixed billing:

Flexible billing:

• Prices vary throughout the day based on market conditions, supply, and demand.
• Prices can change hourly and reflect grid load.
• Electricity prices are higher during periods of high demand and lower during periods of low demand.
• There is an incentive to adjust electricity consumption and avoid peak demand hours.
• Flexible billing can provide economic benefits by consuming energy during periods of lower prices.

Fixed billing:

• Prices are constant and unchanged regardless of the time of day.
• Electricity prices are not dependent on market conditions or demand.
• There is no incentive to adjust electricity consumption based on prices.
• Consumers pay the same price regardless of grid load or time.

Read more: https://elbot.ai/artikler/elpriser/hvad-er-flexafregning/