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How to Make Use of Demand Response Programs for Getting Cheap Electricity

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. 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. 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. During the CPP program, such business customers are offered cheaper electricity rates for several months in order to exchange for those high electricity rates on a handful of 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 a business can greatly reduce the electricity use on many hours of such critical peak periods, taking advantage of such critical peak pricing program can be a fantastic way to get cheap electricity.

Another kind of demand response program is actually the demand bidding program, wherein a business will bid a certain amount of electricity demand which says 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 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 quite fantastic when you know more about such so that you can have more affordable electricity for the business.

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