Smart grid has emerged as a promising technology for enabling bi-directional communication between the power company and its users to facilitate intelligent, robust, and resilient next generation power grid systems. Through this technology, both the power company and its subscribers can be equally benefited, not only from economic point of view, but also in terms of environment-friendly quality of power usage. One important challenge for the smart grid designers is the demand side management, which can lead to avoiding the peak hours and reducing the cost for the consumers. In this paper, we address the power balancing challenge for the smart grid and discuss different solutions including game theoretic methods and demand control policies. Also, we present our novel demand control policy for achieving an effective management of the power consumption. Computer simulations demonstrate the effectiveness of the proposed policy compared to existing ones.