Electric power industry is undergoing a profound change. The change is driven by technical, economic and environmental factors. The emerging challenges are particularly significant for distribution grids, where the level of automation or smartness is relatively low. With the push for energy conservation, demand-side management (DSM) and demand response (DR) are becoming vital tools under the smart grid paradigm. This paper outlines some experience obtained at the University of Tasmania, Australia in developing DSM and DR systems.