Unleashing the Power of Dynamic Energy Tariffs with Michael Lamerton from Immersa

Welcome to an insightful Q&A interview that explores the transformative potential of dynamic energy tariffs. In this Q&A Insight discussion, we sit down with Michael Lamerton, Immersa’s Head of Commercial and a respected renewable energy expert.

Join us as we delve into the world of dynamic energy tariffs, uncovering how they work, who can benefit from them, and the exceptional advantages they offer.

Throughout this interview, we’ll unlock the knowledge and expertise of Michael, who shares invaluable insights into the sustainable and cost-effective Home Energy Solutions available through dynamic energy tariffs. The opportunities are vast, from residential homeowners to commercial businesses and public buildings. Discover how dynamic energy tariffs can lead to environmental sustainability and commercial success, propelling individuals and organisations towards a brighter, greener energy independence future.

Explore the interview below and read on to gain a deeper understanding of dynamic energy tariffs, learn about the potential savings, and discover how the team at Immersa can drive your energy transformation.

Interviewer: Today, we have the pleasure of chatting with Michael Lamerton, Immersa’s Head of Commercial.

Welcome, Michael and thanks for taking the time to discuss dynamic energy tariffs with the Immersa audiences. Let’s jump right in and explore.

Q1: First things first, could you give us a brief overview of what dynamic energy tariffs are?

Michael: Absolutely, and thanks for giving me the opportunity to detail this fascinating subject to everyone! In essence, dynamic energy tariffs, or time-of-use tariffs as some refer to them, are an innovative approach to electricity pricing that aligns with the changing demand and time of day. Rather than a fixed rate throughout the day, these tariffs offer different rates for peak and off-peak periods, encouraging consumers to adjust their energy usage accordingly. Essentially, it’s similar to the old Economy 7 Tariff but with more agility.

Q2: It’s something relatively new to me, and I imagine many others, Michael, so how does a dynamic energy tariff work in practice?

Michael: The general idea, which is gaining traction with energy providers, is to incentivise consumers to consume electricity during off-peak hours when demand is lower. Typically, these tariffs have lower rates during off-peak periods and higher rates during peak hours.

You can take advantage of the lower rates and maximise your savings by shifting your energy usage, such as charging batteries or running appliances, to off-peak periods.

There are a few things to consider and be aware of, though. For instance, as part of an energy pricing scheme model, where the cost of electricity changes every hour and is linked to prices in wholesale electricity markets, the price you pay for electricity can vary throughout the day based on supply and demand factors.

Here’s an overview of two things you need to know when it comes to understanding how dynamic energy tariffs work:

One is price fluctuations: When renewable power production is high, such as on sunny or windy days, or demand is low, for example, during the night, consumers pay a lower price for their electricity. Conversely, when demand is high, and supply is low, the price of electricity would increase.

Two, Consumer Behaviour: If consumers can shift their electricity consumption to times when prices are lower, they can make significant savings. For example, they could charge their electric vehicle in the middle of the night when power prices are lower. When there is an excess of power supply, it can be more cost-efficient for electricity producers to pay consumers to use energy rather than disconnecting their facilities from the grid.

It’s also worth mentioning some tariffs can also change even on a daily basis. Customers are notified 24 hours in advance of any tariff rate changes, and times, so they can plan and take full advantage of super cheap import prices and very rewarding export prices.

Q3: Who can take advantage of dynamic energy tariffs? Is it limited to residential homeowners, or can businesses and public space buildings also benefit?

Michael: Dynamic energy tariffs are available for all consumers. Residential homeowners are one group who can certainly benefit by optimising their energy usage to save money and reduce their carbon footprint. However, the advantages extend well beyond residences.

Commercial businesses, manufacturing facilities, and public buildings in sectors like education, healthcare, retail, and accommodation can all reap the rewards of dynamic energy tariffs. It’s a powerful solution for sustainable energy management and cost-effectiveness across various sectors.

I can go into more detail, but off the bat, on average, consumers can save anywhere from 10% to 40% on their electricity bills by leveraging dynamic energy tariffs.

Q4: That sounds like very impressive figures. Could you highlight some of the energy companies supporting dynamic energy tariffs and give us some detail about the figures, Michael?

Michael: Certainly, there are a few that spring to mind immediately, but the take-up by energy providers for dynamic energy tariffs is growing and changing regularly. Many energy companies are recognising the value of dynamic energy tariffs and are offering them to their customers. With their commitment to a sustainable energy future, these companies provide the necessary infrastructure and pricing structures to make dynamic tariffs accessible and beneficial.

While specific companies may vary depending on the region, it’s worth exploring local energy providers to discover the available options.

One such tariff is the Intelligent Octopus, designed specifically for electric vehicle (EV) owners. During the night, customers can enjoy a 6-hour period with electricity priced at a mere 7.5p per unit.

However, during the day, the rate increases to 39.5p per unit. By charging your 8.7kWh battery during the low-cost night-time period and utilising it during the more expensive daytime hours, you can save an impressive 32p per unit. Imagine the impact this can have on your energy bills throughout the year. In fact, by implementing this strategy during the winter season alone, you could potentially save up to £418 annually!

But, for those still waiting to get on the EV journey, don’t worry! Octopus Flux offers an enticing solution. Flux encourages users to charge their batteries during off-peak times and export electricity to the grid during peak hours when electricity is expensive.

The rates we see at Immersa for exporting vary daily, but currently, some participants are being paid 35p per unit for exporting between 4:00 pm and 7:00 pm.

I would strongly advise, though, that everyone should check with their suppliers and explore the options as these tariffs are continually changing.

Rates will depend on the supplier, so everyone should check and explore the options as these tariffs are continually changing.

However, no matter who the supplier is, or the rate, it’s an opportunity to benefit from reduced energy costs and contribute to a more sustainable and balanced grid, something we would all welcome.

Q5: All very exciting and Impressive! Now, let’s talk about Immersa. Could you share some insights into the expertise and experience your team brings to the table when it comes to dynamic energy tariffs?

Michael: At Immersa, we take pride in our extensive knowledge and experience in renewable energy solutions, including dynamic energy tariffs. Our expert team deeply understands the market, tariff structures, and the latest industry trends. We offer turnkey solutions, guiding clients from feasibility assessments and planning to installation and ongoing grid management.

We aim to empower our clients with the knowledge and resources they need to embrace sustainable energy and achieve energy independence.

Q6: How can homeowners and businesses take the first step towards exploring the potential of dynamic energy tariffs? 

Michael: It’s simple! If you’re curious about how dynamic energy tariffs can provide you with a sustainable and commercially beneficial future, contact our Immersa team.

We offer personalised consultations to understand your specific energy needs and provide tailored solutions. Our experts will guide you through the available options, helping you navigate the complexities of dynamic tariffs and charting a path toward a greener and more cost-effective energy journey.

We understand how the energy market and tariffs can be a complex landscape, but although we’re experts in the field, we’re certainly not jargon, industry-confusing dialogue. We continually ensure we pass our knowledge on comprehensively but concisely, ensuring people gain the same knowledge as us and can make informed decisions for them, their home, or their business.

Come and speak to us is the simple advice I would give people.

Interviewer: Thank you, Michael, for sharing your valuable insights on dynamic energy tariffs and Immersa’s expertise. It’s clear that this innovative approach can empower homeowners, businesses, and various sectors to unlock the potential of sustainable energy. 

To all our readers, take up Michael’s offer and don’t hesitate to contact the Immersa team and explore how dynamic energy tariffs can transform your energy future.

Take the first step toward a sustainable and financially rewarding energy journey today.

Contact Immersa now and embark on your journey towards energy independence.

To get started, visit our enquiry form here or call us at 01453 545222

Let’s shape a sustainable tomorrow together.