This paper proposes a novel demand response model using a fuzzy subtractive cluster approach. The
model development provides support to domestic consumer decisions on controllable loads management,
considering consumers’ consumption needs and the appropriate load shape or rescheduling in
order to achieve possible economic benefits. The model based on fuzzy subtractive clustering method
considers clusters of domestic consumption covering an adequate consumption range. Analysis of different scenarios is presented considering available electric power and electric energy prices. Simulation results are presented and conclusions of the proposed demand response model are discussed.