Obtaining Cheap Electricity Through Demand Response Programs
If you are a business electricity customer that has a big amount of consumption on electricity, you can surely benefit from the demand response programs so that you can minimize the electricity bills. There are a lot of electricity suppliers that offer these programs so that they can give incentives to larger customers and be able to cut back on the consumption of electricity during peak demand times. For example, such Southern California Edison offers many demand response programs to those business customers with electrical consumption exceeding 200 kW.
One common type of such demand response program is usually known as the CPP or the 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 during the hot summer afternoons when a lot of customers make use of their aircons and they are also declared one day ahead as response to the forecasts of high temperatures the next day. When such business is able to reduce the electricity use on several hours on critical peak periods, then having the critical peak pricing program can surely be an excellent way to get such affordable 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. Also, these periods are typically declared a day in advance, though some may also be declared on the day of the event. With this program, the business would get a bill credit if it would meet some or all of the bid to minimize the electricity demand but it is typically not penalized when this doesn’t reduce the electricity consumption. The program can be a great thing for the businesses that like the option to save some money on electricity by minimizing such demand on the peak periods but don’t want to spend a lot when they are not able to reduce their demand on one or more periods.
Depending on such supplier of electricity, you can have other types of demand response programs that are also available to the business. Such common theme of these programs is that they are going to reward you for reducing the electricity demand on the peak demand periods. When your business can do this, then you would be likely to find such demand response program which may help you to save some money on the electricity bill.
It would be quite fantastic when you know more about such so that you can have more affordable electricity for the business.