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Real-time pricing

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Definition Edit

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 Edit

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.

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