Energy meters have become an indispensable part of the power sector as they provide a means of knowing how much energy is consumed by a consumer. This information then helps in billing the consumer. Billing is usually done at a specific amount, determined by the distribution company (DisCo). However, sometimes theft of electrical energy is carried out by individuals, businesses, institutions, etc., causing wastage and losses in terms of revenue for the DisCo. It becomes imperative to be able to design a system that can detect this waste or theft. This project solves this problem by designing a system that not only detects theft but also reports it to the appropriate authority. This was achieved by designing two energy meters, each equipped with Bluetooth technology, and equipping one of the meters with GSM technology for reporting. One energy meter is stationed at the home of the consumer, and the other energy meter is stationed at the pole side of the electricity supply. The energy meter at the pole side is installed such that it is in the return path of the current. The meter in the home of the consumer measures the energy consumed by the consumer and sends the information to the energy meter at the pole side through Bluetooth technology. Electricity theft is usually done by illegally tapping energy from the lines that supply power to consumers, thereby bypassing the energy meter. Whenever there is a theft, the energy meter installed at the homes of consumers will not pick up this energy, but the energy meter installed at the pole side will since it is installed at the return path of the current. As the energy meter installed in the home of the authorized consumer sends its information to the energy meter at the pole, if there is theft of energy, the two pieces of information will not be the same. This is how the system knows that a theft of electricity has occurred. A report of theft and energy consumed is then sent out to the DisCo.