Negative electricity prices as a wake-up call: how Belgium can build a smarter energy system

A record with a downside

According to energy trader Matthias Detremmerie, this phenomenon occurs “when a lot of electricity is being produced, often on sunny or windy days, and demand is lower than supply.” The result? The wholesale price drops below zero.

For households with a dynamic energy contract, this brought direct benefits. For others, with a fixed contract, nothing changed. But behind this seemingly positive news lies a challenge: negative electricity prices show that our energy system is increasingly out of balance. At certain moments we produce too much electricity, while at other times we face shortages.

Variable tariffs and the impact on consumers

The VRT article makes it clear that not every consumer benefits equally from negative prices. “People with a fixed contract will not feel any impact from negative electricity prices. Their electricity price is contractually fixed.” For consumers with a variable contract, it depends on the indexation method, while “the greatest impact is with dynamic contracts.”

A dynamic contract follows the pure market mechanism: hourly prices are directly passed on. “Those with a dynamic contract who consume electricity will actually be paid,” Detremmerie noted.

This underlines how important it is for consumers to understand their contract and the price signals that come with it. Only with sufficient transparency can households make smart choices and truly benefit from variable tariffs and dynamic energy prices.

The role of the home battery

For households with solar panels, the story is more complex. VRT reports: “If you have solar panels, depending on your contract, you may have to pay for the surplus you inject into the grid during negative electricity prices.” For some families, this is a reason to temporarily switch off their solar panels.

But that is a missed opportunity. With a home battery, surplus power can be stored instead of exported. This increases self-consumption, reduces costs, and contributes to a more stable electricity grid.

Batteries are not just a personal savings solution, they are also a lever for the entire system. They help reduce the imbalance between production and consumption.

Energy management through an EMS

A battery is powerful, but only in combination with an Energy Management System (EMS) does it reach its full potential. An EMS continuously monitors production, consumption, storage capacity, and energy prices. Based on this data, it autonomously decides: do we charge the battery, start the electric vehicle, or run the heat pump?

The VRT article points out that “supply and demand must always be in balance to guarantee the stability of the grid” and that large-scale storage will be part of the solution. This is exactly where the EMS comes in: it translates price signals into concrete actions, tailored to the user’s situation.

At times of negative prices, the EMS can automatically switch on appliances to consume electricity cheaply — or even profitably. At times of high prices, it does the opposite. This way, consumers gain control over their energy bills while the grid is simultaneously relieved.

A fair and transparent energy system

Negative prices also expose the weaknesses of our current tariff system. As Eneco noted in the VRT article, “taxes and distribution tariffs make up about half of the electricity bill” and still apply even when prices are negative. This means consumers end up paying at times when they are actually helping to relieve the grid — an illogical incentive.

This is an opportunity for policy and technology to work together. A fair system should reward flexible and smart electricity use, rather than penalize it.

The vision of Xemex aligns perfectly with this: technology must be transparent and fair, without hidden conditions or dependencies. No vendor lock-in, but flexibility, so consumers remain free to choose which devices or suppliers they connect with.