Seems like an unnecessary convoluted system to regulate demand. Why not simply leave kWh prices fluctuate during the day? Smart meters would adjust consumption

Seems like an unnecessary convoluted system to regulate demand. Why not simply leave kWh prices fluctuate during the day? Smart meters would adjust consumption accordingly. You can use your smart meter to kick-off powering some things, like charging your car, heating the house, AC, etc, only below a certain price level. If enough users do the same, the operator of the network can adjust dynamically the load of the grid by simply increasing/decreasing prices.