Digitization of analogue meters has enabled the travel of information into duplex in electric power grids. This has fetched the ability of data collection and analysis from the consumer sinks. Transfer of such data requires extensive digital network transmission infrastructure as a parallel space. Being incorporated with a fresh network environment since proposals, harnessing and applying the modern network technologies(Software Defined Networks, Network Virtualization) in smart grids from elemental level provide opportunities for building applications which are dynamic and generic. This study explores the Demand response event, where the various problems of supply constraints (considerably in peak hours) are dealt with possible load smooth and reducing inefficient power generation. This follows the exploration of Variable Pricing possibilities based on factors like seasons, power generation modes, demand times. The whole network infrastructure is built upon Software Defined Networks’ (SDN) Virtual Network Functions (VNF) which gives possibilities for customization, easy adaptation to custom behaviours and much.