Demand side management (DSM) in smart grid paradigm is an energy management strategy of the grid using advanced data communication and networking. The aggregator, a third party entity, is appearing as a key player in managing the demand during the peak hours between the utility and the consumer. In this work, a general framework is discussed and focuses on the interactional issues between the utility, the aggregator and the consumers. The paper also discusses the role of communication in the context of interaction among the three players. In addition, it also presents the model of the framework which can enable the consumer to effectively participate in the DSM. The proposed model considers the direct load control (DLC) program which uses the concept of demand reduction bid (DRB) in aggregated demand response
