One of the important scientific discovery of all time is of electricity. Electricity has many uses in our day to day life and provides comfort to people. The existing system for Electricity meter reading has many drawbacks such as real-time data is not available, huge human resource requirement, difficulty in construction etc. This research proposes an IOT based system to overcome above drawbacks and provide additional benefits. The proposed system uses Arduino microcontroller, to read the no of units consumed by electrical appliances. These data are then sent to a remote server using Ethernet shield. At the user end, an android application is created which allows the user to fetch data in real time and represent it graphically. In an effort to overcome the energy crisis, these systems send an SMS to the user when his/her home electricity usage crosses a threshold. To notify the user about his daily electricity usage a notification will be sent to the Android application every day. The above system has been designed to overcome drawbacks of the existing system, ease of accessing real-time data and to reduce energy crisis.