A method, system and computer program product for distributed forecasting and pricing for a commodity supplied by a provider to a user. In one embodiment, the provider announces a pricing plan, and the provider receives a forecast of an estimated amount of the commodity from the provider that the user will use over a given period of time. The provider provides the user with an actual amount of the commodity over the given period; and the provider charges the user for the actual amount of the commodity provided to the user based on the pricing policy, the actual amount of the commodity provided to the user, and the accuracy of the forecast. In an embodiment, the forecast is received by the provider after the provider announces the pricing plan and before the given period begins. The forecast may be received from the user or from a third-party forecaster.