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This research paper works on Smart Meter system through networking. This paper will provide the overview about smart networking for Smart House system. This method is very advance and reliable. It will manage whole power consumption and communication between the systems. A Smart House consists of smart appliances due to installation of smart cards, which act as communication icon between Smart Meter and appliances. Number of such Smart Houses are connected with a Town Server. This Town Server is able to control power, provided by service provider and power generated by Regenerative sources. The connection between Smart Meter and Town Server is via local PSTN and also with Power Line. Now further on, Town Server is bidirectionally connected to another T.S via power line for power transmission and via PSTN. And also connected with Main Server through PSTN. All the Smart Houses are controlled by Town Server. Town Server also takes reading from meter of each moment record it and sent it to Main Server after each hour and also manage power within its area of control or manage power from other towns for its Smart House. Main Server takes data from each Town Server after every hour and compile a bill up to that reading. This Main Server is directly controlled by service provider. The main advantage of such networking system is, in any case of disturbance to the Main Server, system remains on working, as all the power management, recording and its communication are keep on going by Town Servers.