A proficient sensor network-based smart meter multi-demand response system using the Internet of things (IoT) is a technology solution that leverages advanced sensor networks, smart meters, and the IoT to optimize energy demand and response in various settings such as residential, commercial, or industrial environments. The system aims to improve energy efficiency, reduce costs, and promote sustainable energy consumption. The purpose of electricity distribution is to satisfy the demands of the customers. Electricity distribution networks have a major role as they are used to transmit the power from the transmission line to individuals. The purpose of this framework is to identify the fault at home demand, reduce the energy theft cases, and auto-billing energy will overdue cut ON/OFF process. The system is designed to solve the above-mentioned problem for enhanced sensing smart meters and communication capabilities; as a result, measurement and control functions will be improved. In this article, an efficient power theft and fault identification are designed, and the relay circuit for overdue ON/OFF is also done. All this information is sent in the form of messages and mail alerts to the consumer’s mobile phone.