Demand flexibility has recently seen large interest from Swedish policy makers, and dynamic pricing is thought to be a useful tool for improving efficiency, reducing emissions and enable the integration of more renewable generation. However, so far, few households have adopted such pricing schemes. In this seminar, I will present some previous, ongoing and future research by me and my colleagues that relates to this topic. In particular, I will explain why policy maker’s thrust for dynamic pricing of electricity may be overly optimistic and based on unrealistic assumptions about households’ behavior.