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The aim of this project is to control losses on distribution side, mainly focus on losses due to theft of electricity. The theft of electricity is one of major problem of energy crises in World.These illegal connections become great hurdle to achieve revenue, to overcome such problem there should be a smart system which will detect and control theft of electricity. This project is based on smart system which will detect the theft load and also burn the theft load automatically. The aim can be achieved by comparing input and output. This system uses micro controller for comparing input power and output power utilized by consumer, if difference is zero or near to zero then there will be no theft and if difference is more which is not negligible then system will consider it as theft. So the system will turn off the actual load and send high voltage to the theft load and will burn the theft load.