Demand response (DR) is defined as: “the change in behavior of electricity consumption by end use customer from their normal electric consumption behavior in response to change in electricity price or electricity grid load” [1]. Demand response in private household sector has huge potential. In year 2011 , 140 TWh of electricity is being used in private household in Germany.. This is more than 25 percent of the electricity generated in Germany. The energy savings potential in industry is 40 TWh. Private households could rid themselves to a considerable degree of unnecessary energy costs. [2]. The private household can better use demand response to decrese the electricity billing price .DR in household sector can help in stabilising grid and incorporate renewable energy and storage system in the grid . So changes in the lifestyles of consumption can create a huge effect. In this study, this shown that using a price function algorithm in demand side , huge impact can be created in demand side management[1, 3–7].
