To develop a prototype model of smart meter for the purpose of demand-side management. This work exchange sensitive data transfer between energy producer & the consumer, Thereby aims at increasing the efficiency of power consumption. One of the intent of DSM is to educate the consumer to take part in improving the peak load management by focusing the time of usage of load consumption. This smart meter transfer data to control centre wirelessly through IoT modem.. IoT V2 SIM-900 which sends data at a sampling rate of 56-114 kbps by a packet based wireless communication to the webpage through internet. The webpage which is created by an open source software www.iot cloud servers.com. The IoT modem not only acquiring data from the sensor to the cloud but also monitor such information and alert the users whenever the data sending route got damaged. In this work, the smart meters are communicated and monitored by one another and by the control center via UART (Universal Asynchronous Receiver Transmitter) to detect compromise attack, which uses Arduino UNO as a controller. Usually software can't protect hardware from physical attack. A little bit of Physical access to the smart meter is so dangerous, causes pwning, mess up with the memory and finally leads to faulty data reading. Buses are used in an embedded system to communicate with each other. Most commonly used protocols are I2C, UART and SPI. Whenever the bus protocol of a particular meter gets attacked/damaged. It couldn't send data to the main server. At that time, the data's are bypassed and safely send via neighbouring meter to the control centers. During this process is taking place the neighbouring meter couldn't see defected meters data, they can only do data transfer functions.