#5 Dynamic pricing: opportunity or headache
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Context
As of January 1, 2026, electricity distribution system operators (DSOs) in Switzerland will be allowed to introduce dynamic pricing models, which adjust electricity prices based on time periods, demand levels, or other system signals. This shift paves the way for more flexible and efficient grid management, but it also raises key challenges:
- How can a dynamic tariff be designed to be both relevant and viable?
- What impact will it have on DSO revenues?
- Will consumers respond to dynamic price signals?
- Can excessive complexity or overly burdensome changes for users be avoided?
Challenge
DSOs, which must ensure optimal operation without a profit-making logic, need tools to test and anticipate the impact of various pricing scenarios. This includes:
- Understanding how customers will react to dynamic signals,
- Accounting for risks linked to uncertainty (e.g. price volatility, forecast errors),
- Ensuring compliance with local regulatory and operational constraints.
Objective
Develop or propose a solution that can:
- Model various dynamic pricing scenarios, including estimated impacts on revenue, consumption, and grid behavior;
- Predict consumer responses based on varying user profiles and levels of awareness;
- Include smart automation mechanisms that help users benefit from new tariffs without additional effort;
- Assess uncertainties and margins of error, while remaining aligned with Swiss DSO constraints.
Partner
Main energy provider in Valais, OIKEN distributes 756 million kWh of electricity per year. In addition to providing multimedia services and electric mobility solutions, OIKEN carries out major projects in the fields of district heating, public lighting, and water network management. A model company, OIKEN employs over 530 people and trains several dozen apprentices.
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