•Dynamic model of an electric arc furnace (EAF) was developed in Matlab/Simulink.•Model is based on simulating varying resistance of the electric arc taking into account its stochastic behavior.•The model was applied for estimation of voltage flicker in power transmission network at the point of common coupling.•Calculations of voltage flicker were compared to measurements obtained from various operating conditions of the EAF.•Influence of short circuit power and switching operating condition of the transmission network on flicker levels. This paper presents a dynamic model of an electric arc furnace (EAF) developed in Matlab/Simulink environment. Model is based on simulating varying resistance of the electric arc in time-domain while taking into account its stochastic behaviour. The model was applied for estimation of voltage flicker in power transmission network at the point of common coupling caused by operation of EAF. Modelling and simulation of an International Eletrotechnical Commission (IEC) flickermeter were also performed in order to calculate voltage flicker from the simulated EAF voltage. In order to verify the developed EAF model, calculations of voltage flicker were compared to measurements obtained from various operating conditions of the EAF such as boring, melting and refining. Influence of short circuit power and switching operating condition of the transmission network on flicker levels at point of common coupling was investigated.