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The paper discusses possible impact of demand-side management (DSM) functionalities on the improvement of reliability performance and formulation of novel reliability assessment procedures of future electricity networks (so called “smart grids”). Firstly, traditionally used continuity of supply metrics and indices are assessed for a given reliability test system without considering any DSM scheme. Differences in the results for reliability indices for test system modelled with bulk loads and system modelled with detailed network configurations supplying connected loads are quantified, emphasising the errors that occur when parts of the system are neglected during the estimations of reliability performance. Afterwards, the effect of DSM on the reliability performance of the same test network are analysed, in order to assess potential benefits of DSM to the network operators, particularly with respect to their annual performance reports. Finally, possible changes in used reliability metrics are discussed, as smart grids will allow to substitute standard lumped representation of system loads at higher voltage levels with a more accurate and detailed information on load demands and load structures, including estimated contribution of demand-manageable portion of system load to the total demand.