Price- based DR Clause Samples

Price- based DR. Price based DR gives customer time-varying rates which reflects the amount and price of electricity in different time periods. This flow of price signals between customers and DR entity takes place through Advanced Metering Infrastructure (AMI) and thereby, customers respond by reducing their consumption during high electricity price period and vice versa. There are three types of price based DR as explained below9. ○ Time of Use (TOU) pricing, where the price for per unit consumption of the electricity is varying for different blocks of time within a day. ○ Real time peak pricing is the rate at which electricity price fluctuates hourly, reflecting the changes in the wholesale electricity prices. The customers are notified about the rates either on day-ahead basis or hour-ahead basis. ○ Critical peak pricing is e a prespecified higher electricity consumption price superimposed on the TOU rates or normal flat rates. This pricing is generally applied during contingency cases or higher wholesale electricity prices for a limited number of days or hours per year.