The smart management system plays a vital role in many domains and improves the reliability of protection and privacy of a system. Electrical systems have become a part in everyday human life. The next generation electrical systems will entirely depends on fully automated and smart control systems. In the present paper various mechanisms of cloud gateways and security issues are explored for smart management of an electrical system. The present survey work is reconnoitred with Internet of Things (IoT) in association with cloud. Cloud based IoT in smart electrical system provides potential enhancement of performance, management, and resilience of the smart system. However, the espousal of cloud based IoT system in smart electrical system to store and retrieve the data from cloud may increase risks in data privacy and security. Despite the different flaws in global integration of cloud with IoT through internet, various end-to-end security schemes are discussed to overcome these flaws. As a result in many of the applications easy IoT cloud gateway along with homomorphic encryption technique is set up to solve communication overheads and security issues.