What does the Customer Demand Management refer to in terms of electricity supply?

Customer Demand Management refers to strategies and practices that focus on optimizing the supply and consumption of electricity to ensure that it meets the needs of customers while promoting system reliability. When considering the role of demand management, it emphasizes influencing how, when, and why customers use energy.

The idea behind Customer Demand Management is not simply about reducing the supply of electricity, but rather about managing customer usage patterns to match available supply more effectively. Proper demand management can involve various techniques, such as demand response programs, where customers adjust their consumption in use during peak demand periods, helping avoid shortages and high prices.

In this context, while reducing the overall consumption of electricity can be part of demand management efforts—focused on efficiency and resource conservation—the approach is broader and seeks a balanced and efficient utilization of the available electrical supply. This ensures that electricity delivery remains both reliable and cost-effective, aiming for a sustainable model rather than simply cutting supply.

The other options are relevant aspects of energy management but do not encapsulate the full essence of Customer Demand Management. For example, managing energy efficiency is crucial, as is load balancing to maintain system stability, and customer service optimization addresses the relationship with customers but these do not solely define demand management efforts.