If they sell it, why ask to buy less of it?

You may have noticed that utility companies often ask you to increase your AC’s temperature setting by one- or two-degrees during the summer. This may seem counterintuitive since they are asking you to use less electricity, but they sell electricity. Also, at times, utilities recommend you use home appliances such as washer, dryer, or dishwasher after 6PM but why do they care when you wash your dishes? 

Barriers & Challenges

DSM can help operate the grid more efficiently. For consumers, it gives them a choice to alter their consumption based on price which leads to cost reductions also. “Well, DSM is great. But this is when you tell me what’s wrong with it.”

DSM – Demand Response

So, if the price of electricity increases significantly, the utility notifies the customer. Customers then adjust their behavior according to the price or incentive provided. This principle is vastly used in most markets where manufacturers seek to influence customers’ shopping behavior by changing the price of goods.

DSM – Energy Efficiency

Energy Efficiency Utility Programs are here to stay. EE Program spending is forecasted to double from 2010 to 2025. This represents $15.6 Billion USD spent on EE Programs in the U.S. alone