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Demand response is a reduction in the electric utility power consumption by a customer in order to better match the demand for power with the supply. Electric utilities have traditionally adjusted supply to match demand; however, there are limits to these methods because some generating units are slow to respond, are very expensive to operate, and/or demand can exceed total power capacity. Demand response adjusts the demand for power instead of adjusting the supply through multiple methods, including simple off-peak metering, where tariffs are static, and smart metering, where tariffs are dynamic.
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Demand response is a reduction in the electric utility power consumption by a customer in order to better match the demand for power with the supply.