Demand Response is a system of mechanisms set up to help manage the usage of electricity in response to the supply conditions. The Demand Response system informs when power is at high demand and low supply. This usually means that prices are high too so informing the customer not only helps to save them money it also encourages the reduction in demand. This reduction in demand saves from power outages and blackouts. The high demand times are most likely to occur in summer when most people have air conditioners running.
One may ask why, if supply is low and demand is high do they not build more power plants. The reason is for the environment, the most common type of power plants cause the emissions of greenhouse gasses. The energy being produced by these plants is not needed all the time, all it takes is the cooperation of the customers to respond to high demand times so that there is enough electricity to go around.
