Concept

”Demand Response means reduction in electricity usage by end customers from their normal consumption pattern for which such consumers could be given a financial incentive.”

There are times when the grid is unstable due to demand surpassing available supply, unplanned generation shutdowns, transmission outages, congestion constraints and high UI charges being incurred by the State due to over-drawl at low frequency. In order to reduce the stress on the grid, Utilities ask customers to reduce demand in response to a price signal or financial incentive. Typically the request to reduce demand is made for a specific time period on a specific day which is referred to as a “Demand Response Event” or simply an Event.