Abstract: Electrical energy is very imperative for ever day life and a spine for the industry. Electricity is in discipline 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 theft of electricity. The use of the electricity due to theft using GSM module. In order to integrate the various parts together we must first properly understand the working of the different parts to be integrated together. A brief study is alone on the components and the technology which were going to use in our project. In this project, the basic concepts behind RFID technology are introduced, and the associated security issues and threats in using RFID technology, along with possible measures on how to tackle them, are discussed. The objective is to deliver a greater understanding of the security related aspects of this technology

Keywords: PSDP-Power supply distribution point, GSM-Global system for mobile communication .RFID-Radio frequency identity module.