Abstract: It is an IOT based paper electricity is one of the fundamental necessities of human beings which is commonly Used for Domestic, Agriculture, Industrial purpose. Power theft and Meter billings are biggest problems in recent days which causes a lot of loss to electricity board. If we can prevent these thefts we can save a lot of power. This is done by Smart Energy Meter by using IOT, present an efficient and cost-effective way to transfer the information of energy consumed by consumer wirelessly as well as it provides facilities to detect illegal usage of electricity. Smart Energy meter by using IOT basically consists of three major components namely controller, Wi- Fi, theft detection device. Whenever there is any fault or theft, the theft detector sensor detects the error. The controller plays a crucial role in keeping all the components in the working state. In this system the energy meter is connected to internet. The proposed system is capable of continuously monitoring and being notified about the number of units consumed to energy provider and consumer. The energy consumption is calculated automatically, and the bill is updated on the internet by using a network of internet of things. This automation can eliminate the manual work in electricity maintenance. In this paper mainly focuses on automatic billing, theft detection, power optimization and providing the relevant energy consumption information to user.