Implications of dynamic electricity tariffs on manufacturing companies

The growth of renewable energy, electrification of transport and phase-out of fossil fuels are impacting the entire power grid. Thus, systemic measures, such as load management (also known as demand-side management – DSM), are being introduced to balance electricity supply. These measures will also significantly affect the operations of industrial companies while offering incentives to optimize electricity consumption and reduce production costs.

What are dynamic electricity tariffs?

One of the key factors in increasing the share of renewables in final energy consumption and efficiently managing the electrical grid is active load management. It is manifested in dynamic tariff pricing, which aims to encourage proactive load management through a new methodology for charging for electrical grid use, known as grid fees, which is based on the Electricity Supply Act (ESPA) implemented in 2021.

The primary goal of dynamic tariffs is to influence consumer behavior and reduce electricity consumption, especially during periods of high demand, by charging higher prices. This is intended to encourage industrial consumers to adjust their production (-adjacent) activities to periods of lower demand, improving load distribution on the power grid and reducing the need for new infrastructure capacity.

One significant change is the shift towards a significantly higher cost weighting of the power tariff compared to the energy tariff, in contrast to the previous regime, which allocated a larger portion of network costs to the energy tariff.

Dynamic pricing also enables better utilization of renewable energy sources such as solar and wind, as production from conventional sources can be adjusted based on their availability.

Furthermore, it encourages the adoption of energy management technologies and energy storage systems, allowing companies and manufacturers to plan production in accordance with energy prices.

What do we need for electricity load management?

Electricity load management in manufacturing can be achieved through the use of advanced technologies, smart grids, modern metering devices and energy management systems.

Smart metering equipment. The basis for implementing dynamic pricing is the use of smart meters and metering devices that enable precise real-time monitoring of electricity consumption and the transmission of data to a central energy management system.

Communication infrastructure. Efficient communication infrastructure, based on robust data networks and IIoT technology, is required for transmitting data from smart meters and metering devices to the central system and for receiving and storing tariff information.

Energy management system. This system forms the basis for load management, allowing real-time monitoring of consumption for all key consumers in production, data analysis and consumption forecasting, and optimization of consumption in response to dynamic tariffs. This level of control cannot be achieved manually, but only through appropriate digitization and process automation.

Data monitoring and analysis. To effectively leverage dynamic tariffs, it is essential to accurately analyze energy consumption data to identify consumption patterns and adjust production (-adjacent) processes in accordance with tariff changes.

Automation of load management. Automation plays a key role in responding to dynamic tariffs, enabling consumption adjustments based on current tariff prices and adapting production (support system) schedules to time periods with lower tariffs, including through artificial intelligence algorithms.

Working with energy providers. Cooperation with electricity suppliers is also an important factor, as are agreements on the introduction of dynamic tariffs and determining best practices for consumption adjustments.

Education and training. Understanding dynamic tariffs and managing energy consumption in accordance with tariff changes also requires training for employees involved in the planning and implementation of production processes.

How can we help you at Metronik?

Metronik has developed the MePIS Energy software solution to monitor and manage energy consumption.

It is designed to monitor consumption in real time, detect and eliminate hidden losses through instant communication between key stakeholders in production events, and enable seamless adjustment to dynamic electricity tariffs.

MePIS Energy consists of several modules for energy monitoring and energy management, energy accounting and advanced analytics with artificial intelligence to forecast consumption based on various production and other factors.

It is also flexible in terms of data acquisition from machines, meters and other applications, serving as a reliable foundation for dynamic electricity tariffs.

It provides industrial companies with clear and understandable visibility into energy consumption in their production processes, helping them to identify improvement opportunities more quickly and manage energy load more effectively.

Key benefits of MePIS Energy:
  • Comprehensive real-time overview of energy consumption in relation to various production factors
  • Rapid detection and elimination of unnecessary energy consumption
  • Proactive energy load management in production
  • Clear KPI-based information for effective energy management at all levels of the organization, from operations to management
  • Secure storage of all energy consumption data in one place
  • Tools for monitoring and reducing greenhouse gas emissions and preparing energy reports
  • Basis for setting targets and verifying the effectiveness of measures in accordance with ISO 50001, ISO 14001 and other standards.

For more information and solutions related to energy efficiency in production, please contact Vanja Tomažič at