Advancement in demand side management strate gies enables smart grid to cope with the ever increasing energy demand and provide economic benefit to all of it's stakeholders. Moreover, emerging concept of smart pricing and advances in load control can provide new business opportunities for demand side management service provider or aggregator. The aggregator act as a third party between the electricity supply system and the consumers, and facilitate consumers to actively participate in Demand Side Management (DSM) by bidding price against power reduction with some constraints. This work develops a novel algorithm for aggregated demand response for smart distribution network. Simulations are carried out which identify the demand reduction bids and consumer constraints. The simulation results of the proposed algorithm demonstrate the potential impact of an aggregated demand response on the power system.