Electricity theft is one of the reasons that cause huge financial loss to the government. Few customers are resorting to electricity theft to enjoy free electricity services without paying the bills. This paper proposes a solution to prevent some of the kinds of electricity theft using ARM7 (Advanced RISC Machines) microprocessor and GSM (Global System for Mobile Communications) module. An energy meter is designed using ARM7 to detect the amount of current being used. GSM module is used for the

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... communication between the consumer meters and the energy meter. It is a bidirectional communication process. A consumer can easily recharge his/her energy meter by sending an authenticated pin to the power station. We use SIM in the GSM module for the communication purpose through SMS. This paper also proposes few measures to prevent electricity pilferages like tampering, meter bypassing, removal of meter. So the proposed system not only helps in prepaid recharge system but also to reduce the different kinds of electricity pilferages. The aim of this project is to detect the power theft and intimation to electricity board about meter information through SMS and disconnect the power to loads when power theft is detected. Electricity theft is at the center of focus all over the world but electricity theft in India has a significant effect on the Indian economy, as this figure is considerably high. Ineffective and inefficient present methods of detecting and preventing Power theft cause a revenue loss along with damage to personal and public property. Large amount of power shortage is caused due to power theft. One of the challenges in stopping power theft is the difficulty in detecting power theft. In particular it is difficult to find the exact location where power theft is occurring. Measurement of parameters like power line current and power line voltage has not been available in a satisfactory way to optimize power network management.