Efficient load utilization in order to match electric supply is one of the most considered factors in smart grid management. Demand side management (DSM) strategies such as real-time dynamic energy pricing has motivated customers to efficiently use their energy in order to reduce their bills intelligently. However, this real-time dynamic pricing can be a threat to privacy of smart homes inhabitants, as their lifestyle can easily be revealed via these real-time electricity values. Therefore, a strong privacy preserving strategy needs to be incorporated with real-time pricing. In this paper, we propose a Differentially private demand Response enhancing Dynamic Pricing (DRDP) strategy that incorporates the advantages of differential privacy, and usage based dynamic billing. The proposed strategy effectively protects user's privacy along with enhancing dynamic pricing by incentivizing the participating smart homes.