System and method for reducing power consumption during peak demand period is disclosed. A consumption unit comprises a power limiter. An AC power limiter converts a portion of AC power into heat and generates an output for a temperature sensor. A comparator has one of the inputs as the output of the temperature sensor and another input as a reference generated by a controller. A feedback loop is established by connecting output of the comparator to secondary winding of a power transformer through a switch. A DC power limiter is also disclosed.