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Discussion

Price-based demand response relies on

  • A.the consumer reacting to a tariff that varies with time or conditions
  • B.the utility switching the consumer's own equipment directly
  • C.a contractual obligation to reduce demand on request
  • D.the installation of storage at the consumer's premises

Answer: A

Time-of-use, critical peak and real-time pricing all leave the decision with the consumer and rely on the price signal reaching someone able to act. Incentive-based programmes instead pay for a commitment or take control directly.

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