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This paper investigates the response and characteristics of the narrowband power line communication (NB-PLC) technique for the effective control of electric appliances such as smart air conditioners (SACs) for demand side management (DSM) services. The expression for temperature sensitivity by examining the influence of atmospheric temperature variations on power consumption profile of all possible types of loads, i.e., residential, commercial, and industrial loads is derived and analyzed. Comprehensive field measurements on these power consumers are carried out in Lahore, Pakistan. The responses of low voltage channels, medium voltage channels, and transformer bridge for a 3–500 kHz NB-PLC frequency range are presented for DSM services. The master control room transmits control commands for the thermostat settings of SACs over power lines, crossing the transformer bridge to reach the SACs of power consumers by using communication protocol smart energy profile 1.0. The comparison of hourly and daily power consumption profiles under evaluation loads, by analyzing typical and variable frequency air conditioners on setting thermostat temperature at 25 °C and 27 °C conventionally and then by using DSM control technique, is analyzed. A prominent reduction in power consumption is found with the implementation of the DSM control technique. [ABSTRACT FROM AUTHOR]