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Obtaining Cheap Electricity Through Demand Response Programs

When you are a consumer of electricity with a really big consumption, then you can make use of the demand response programs which can surely help minimize the electricity bills. Various electricity suppliers are offering such programs for them to be able to provide incentives to the bigger customers and to cut back on the electricity consumption on peak demand times. The Southern California Edison, for instance, is offering demand response programs to such business customers that have electrical consumption which exceed 200 kW.

A common kind of this demand response program is often known as the CPP or such critical peak pricing. In the CPP program, those business customers are provided cheaper electricity rates for most of the year to be able to exchange for such really high electricity rates on a handful of the critical peak periods. These are typically during the hot summer afternoons when a lot of customers run their air conditioners and they are also often declared a day in advance in response to the forecasts of high temperatures the next day. If the business can reduce the electricity use on several hours of the critical peak periods, being able to benefit of this critical peak pricing program can be a great method for getting cheap electricity.

Also one kind of demand response program is called the demand bidding program wherein the business would bid a particular amount of electricity demand that it will give up on the peak demand period. These periods could be declared one day in advance but some are also declared during the day of the event. Through this program, the business is going to obtain a bill credit when it meets some or all of the bid to reduce the electricity demand but such is not penalized when this doesn’t minimize such electricity consumption. The program may also be more palatable for the businesses which want the option to save money on the electricity through reducing their demand on the peak periods but don’t like to pay so much if they aren’t able to minimize their demand during one or more of such periods.

Depending on such supplier of electricity, you can have other types of demand response programs that are also available to the business. One common theme of these programs is that they would reward you through reducing such electricity demand on the peak demand periods. When the business can do so, then you could find such demand response program which would help you save money for the electricity bill.

It would be a great thing that you know more about this so that you can get a more affordable electricity for your business.
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