What Dynamic Pricing Is
Dynamic pricing is a pricing approach where the cost to charge (per kWh, per minute, or per session) changes based on real-time or scheduled conditions such as time of day, charger availability, grid constraints, energy market prices, or demand at the site. In EV charging, it’s used to manage congestion, recover costs, and influence user behaviour.
Why Dynamic Pricing Matters
Dynamic pricing helps charging operators and site owners align charging demand with operational and grid realities:
– Reduces queues by discouraging peak-time charging at busy sites
– Improves utilisation by attracting users during off-peak periods
– Helps recover higher electricity costs during expensive tariff windows
– Encourages drivers to unplug after completion (reducing bay blocking)
– Supports depot and workplace control by shaping when charging happens
What Can Drive Price Changes
Dynamic pricing can be tied to one or more drivers:
Time-based pricing (Time-of-Use)
– Prices vary by hour/day based on electricity tariffs
– Common for workplace and destination charging
Congestion-based pricing
– Prices increase when the site is busy (high utilisation)
– Encourages drivers to use alternative sites or charge at different times
Grid constraint pricing
– Higher prices when the site is near its power cap or during grid congestion events
– Can be used with demand response programs (where allowed)
Wholesale price-indexed pricing
– Prices track energy market prices (more common in advanced CPO models)
– Requires clear transparency to maintain trust
Idle fees / overstay fees
– Not energy pricing, but a behavioural pricing tool
– Charges increase after charging completes to reduce bay blocking
Common Dynamic Pricing Models in EV Charging
– kWh-based dynamic tariff: price per kWh changes by time window or conditions
– Time-based tariff: price per minute varies (less ideal for slow/fast charge fairness)
– Hybrid tariff: kWh price + session fee + idle fee
– Subscription + dynamic energy: member discount with dynamic rates for non-members
– Fleet internal pricing: internal chargeback rates vary by shift or cost period
Where Dynamic Pricing Is Most Useful
– Public AC sites with limited bays (retail, city charging)
– High-demand locations where queues form regularly
– Networks aiming to smooth load and improve availability
– Depots using price signals internally to influence plug-in timing (less common than scheduling, but possible)
Key Design Considerations
Dynamic pricing must be predictable and transparent:
– Clearly show prices before charging starts (and how they may change)
– Define rules for when price changes apply (start time vs during session)
– Ensure compliance with local regulations on pricing and metering
– Avoid “surprise bills” that damage trust
– Align with roaming requirements if third-party networks display tariffs
– Combine with operational rules (idle fees, time limits) for best effect
Common Pitfalls
– Too complex pricing that users don’t understand
– Price changes mid-session without clear consent → complaints
– Using time-based pricing on AC sites can feel unfair (cars with lower onboard chargers pay more per kWh)
– Dynamic pricing without enough alternative sites → frustration
– Poor signage/app UX → drivers don’t see the real price
Related Terms for Internal Linking
– Demand-based pricing
– Time-of-use tariffs
– Idle fees
– Charging session revenue
– Charging utilization
– Queue management
– Depot energy optimization
– Tariff management