The work presented in this paper proposes a new Demand side management (DSM) algorithm for residential users having higher penetration of heating/resistive loads. The proposed algorithm uses electric springs to operate the non-critical loads in power saving mode, so as to reduce the daily peak, ramping and energy bill paid by the consumers. In order to implement the suggested methodology it is assumed that all the non-critical loads present in the residential complex are fitted with electric springs. The quantum of the power to be saved is completely left to the consumers and the customers are given full independence to choose the required percentage saving in power, which in turn reduces the electricity bill paid by them. Further it should be noted that the proposed energy management scheme re-shapes the entire load curve and achieves energy saving without shifting the non-critical appliances to off-peak timings, which is something new to the literature. The robustness of the suggested algorithm is tested by considering a 24 hour load curve of a residential user and the simulation studies of the same are performed in MATLAB. © 2017 IEEE.