This disclosure enables energy providers and users to establish variable pricing or maximum thresholds for individual components (aka appliances) or groups of components. The consumer (individual or business) defines a usage policy for each device or component which defines limits the consumer is willing to pay in a supply shortage. The usage policy also defines safety parameters as well as energy limiting capabilities of the appliance or component. Energy suppliers use this usage policy to determine which devices get managed or powered off in a shortage situation. With the detailed consumer supply and demand data available from this invention, energy providers may use economic analysis to better understand customer price sensitivity. This information will enable the provider to run simulations of different energy shortage scenarios.