The paper discusses the distribution structure of Talapara Bilaspur Chattisgarh and how the power theft problem in this area is monitored and controlled. Almost about 7000 houses are located and power theft problem is very popular in this area. Illegal consumption of electricity or electricity theft constitutes a major share of NTL (Non-Technical Losses). This dissertation discusses several methods implemented by illegal consumers for stealing electricity a comprehensive review of the advantages, challenges, and technologies involved in the design, development, and deployment of smart meters is presented and distribution wire of aluminum is replaced by rubber coating and insulating wire. Illegal consumer used a non linear load like cooking heater, water heater, freezer, washing machine, tube light, exhaust fan, CFL etc. The theft of power overloads the distribution system and causes low voltage, voltage dips problem and generate heavy harmonics in power system.