A system and method for electricity price forecasting

A system and method for electricity price forecasting is disclosed. This invention relates to electricity price forecasting, and particularly to price forecasting by employing error correction techniques. Existing mechanisms do not offer effective error correction mechanisms and hence there are no means to ensure accurate electricity pricing. The method employs a forecasting module that refers to the patterns of energy consumption from the history and accordingly predicts the most likely energy consumption. In addition, the method also employs neural network based mechanisms in order to determine the states of the values. The method compares if there are errors in the prediction. In case there is error, it determines if the error is within the permissible values. Further, if the error is outside the permissible values then a correction factor is applied to the computed values and prediction is updated.