Our work is the small part of the smart grid system. This is regarding the check and balance of power consumption at the consumer level. It is a well known fact that the consumers are allocated a fixed load according to their requirement at the time of application for the electricity connection. When the consumer increases its load and does not inform the power company, the result is the overloading of the system. This paper presents a solution regarding distribution and load allocation to each customer. If the customer uses power greater than the load allocated, further power is not provided and consequently that appliance is not turned on unless the total load must not be decreased than the allocated load. This is achieved by designing a processor controlled system that measures the power on main line and also the power taken by each device. Now when a device is turned on, its power is measured by the controller and compares it with the main line power, and when the device consumes some power consequently main line power will also be increased thus this main line power is monitored and if it exceeds particular limit that device is turned off through its relay