Demand-side management (DSM) programs in the industrial sector appear to be economically feasible due to the large controllable loads and relatively low costs per control point. Innovative electricity tariffs provide one of the most important DSM alternatives. Because real-time pricing (RTP) is considered as management option which reflects the real cost of generating electricity to the end user, the electricity cost saving potential of RTP through demand management is presented in this paper. These variables include the installed power consumption capacity of the plant, the plant's spare energy consumption capacity, and terms that describe the structure of the RTP tariff.
Time of using (TOU) pricing compared with (RTP) is presented, can either be applied as an LM program or as incentive to drive the economics and the motivation to implement other types of LM programs. TOU pricing also can be taken as a way for consumers to adjust the electricity consumption among different time axis in accordance with the cost of electricity.