An electrical water heater adapted for energy management and a method of controlling the consumption of electrical power from the power supply grid of a utility is described. The bottom resistive heating element of the water heater is a dual element resistive heating element which has a high power rated resistive heating element to heat water and a further low power rated resistive heating element. The power rating of the low power resistive heating element is calculated to be lower than the supply grid diversified mean load. A controller has a communication link with a utility which manages the power supply grid. The utility can control the resistive heating elements of the dual element in such a way, and depending on conditions of the grid, to conserve energy and regulate its frequency thereby resulting in a cost saving to the consumer and the utility. The low power rated resistive heating element is also connectable to an alternative power source.