Electrical energy is very imperative for ever day life and a spine for the industry. Electricity is indiscipline to our daily life with increasing need of electricity the power theft is also increasing power theft is a problem that continues to plague power sector across the whole country the objective of this project is to design a system in order to avoid the displeasure for the users from the fty bill irrespective of the use of the electricity due to theft using GSM module. The proposal in this project is to monitor the power theft and informing the power theft trough sms. Monitoring the power means calculating the power consumed exactly by the user at a given time. The power monitored of the meter. It is helps in identifying usages between authorized and unauthorized users which helps in controlling the power theft, one of the major challenges in current scenarios.