This paper proposes the design of a Smart Home Controller strategy providing efficient management of electric energy in a domestic environment. The problem is formalized as an event driven binary linear programming problem, the output of which specifies the best time to run of smart household appliances, under a virtual power threshold constraint, taking into account the real power threshold and the forecast of consumption from not plannable loads. The optimization is performed each time the system is triggered-by proper events, in order to tailor the controller action to the real life dynamics of an household. This problem formulation allows to analyze relevant scenarios from consumer and energy retailer point of view: here overload management, optimization of economic saving in case of Time of Use Tariff and Demand Side Management have been discussed and simulated. Simulations have been performed on relevant test cases, based on real load profiles provided by the smart appliance manufacturer Electrolux S.p.A. and on energy tariffs suggested by the energy retailer Edison. Results provide a proof of concept about the consumers benefits coming from the use of local energy management systems and the relevance of automated Demand Side Management for the general target of efficient and cost effective operation of electric networks. (C) 2012 Elsevier Ltd. All rights reserved.