A Deeper Look at Electricity Markets
6. Balancing our energy use

When lots of people use energy at specific times of the day, ensuring that our electricity supply is constant, reliable, and uninterrupted is of critical importance. Understanding when we are more likely to be using more electricity is therefore of key importance for energy suppliers. Households often use more energy during time periods when most people are returning home from work, or when large numbers of people are using similar appliances at the same time.
In the UK, a well-known example of this was when electricity providers reported a spike in electricity use during the commercial breaks in highly popular television programmes. When large numbers of people were watching a particular programme (e.g. an international football game or popular series or drama), many households would boil water for tea or coffee simultaneously during the commercial breaks. This intermittent increased pressure on the electricity grid, albeit for a short period, as hundreds of thousands of people made a hot drink, is known as TV pick-up. You can read more about this phenomenon in 9 of the biggest TV moments in electricity history.
Can you think of other examples of when a lot of people increase their energy use or use the same type of appliance simultaneously? Conversely, whilst electricity suppliers need to predict and manage our use of energy, as we move away from fossil fuels to clean technologies, they also need to support the integration of excess energy generated from household solar panels and wind turbines. With households becoming energy providers too, how can electricity grid operators and suppliers manage this additional energy effectively?
Activity: When do we use the most energy? (5 minutes)
Think about your daily routine or local events. Can you identify times in a 24-hour period when lots of people might increase their energy use simultaneously? Make a note of your ideas. If you're working with others you may want to discuss further.
Digitalisation of the energy sector enables both suppliers and consumers to better understand how and when we are using energy, and to manage this more efficiently. For example, real-time data from smart meters and IoT devices help consumers to reduce use and grid operators to optimise dispatch and stability. Digitalisation also enables automated demand response (Auto-DR), where load is adjusted without manual intervention, a key trend in modern electricity systems. This can result in cost savings and supports grid stability for electricity suppliers and operators. In the next section, we’ll take a closer look at one way electricity companies manage our energy use.
Video: A deeper look at Electricity Markets (9:45 minutes)
Download the video transcript.
This video explains how the electricity market works and why flexibility is key to the energy transition. It shows how the forward and spot markets set prices through market clearing, and how renewables make traditional demand-following impossible. It demonstrates how price signals can guide households and industries to shift consumption, reduce imbalance costs, and integrate green energy—while smart control of heat pumps, EVs, and batteries maintains comfort and prevents grid overload.
