Definition[]
Under real-time pricing, energy prices are set for a specific time period on an advance or forward basis and may change according to price changes in the market.
Overview[]
Prices paid for energy consumed during these periods are typically established and known to consumers a day ahead (“day-ahead pricing”) or an hour ahead (“hour-ahead pricing”) in advance of such consumption, allowing them to vary their demand and usage in response to such prices and manage their energy costs by shifting usage to a lower-cost period, or reducing consumption overall.