This paper presents for the first time a unified LINK-based architecture for power systems, which provides the harmonization of power system physics and market rules. It is based on the holistic technical model of power systems “Energy supply chain net” and on the corresponding holistic power market model. The last one is illustrated by means of the actual Austrian electricity market. Furthermore, we show how the unification of the market and grid in the same flow diagram increases the uptake of demand response also in the residential, commercial and small business sectors. Their price driven demand response is described in detail.