The present disclosure relates to modulating energy consumption by a water provision system installed in a building, including one or more electrical heating elements operable to heat water, a heat pump configured to transfer thermal energy from outside the building to a thermal energy storage medium inside the building and a control module configured to control operation of the water provision system, the water provision system being configured to provide water heated by the one or more electrical heating elements and/or the thermal energy storage medium to one or more water outlets, This can include: determining a level of energy demands of a geographical region comprising the building; and upon determining that the level of energy demands is high, controlling the water provision system to switch from using the one or more electrical heating elements to the thermal energy storage medium for provision of heated water.