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This paper is proposing the household energy management and warning system for energy saving solution. The overall control scheme is mainly governed by a dsPIC33 microcontroller. There are four subsystems to be concerned (i) air-condition's inverter control, (ii) fluorescence brightness control, (iii) power switching control (for general loads such as television, radio, fan, etc.), (iv) household electricity usage warning system. This whole system can monitor the power usage and display through a LCD monitor. Then, it can warn the users through LED bulbs when the power usage is getting close to the monthly prescribed energy usage levels. An experiment conducted by installing this system in an apartment room has shown a satisfactory result in reducing power usage level.