This paper grants the strategy and model of the automation system developed for managing electrical power demand in the home. All types of commercial loads are controlled by smartphones via Bluetooth technology. It can be controlled overall power that can be turned ON/OFF or can also control individual loads that are connected with relay and Arduino by simply pressing a button on mobile phone. This paper uses the HC-05 Bluetooth module to receive and transmit data from mobile phones and to home appliances. It improves better communication and responses between mobile phones and the home appliances. The purpose of the research is also to manage household appliances in order to reduce the risk of electric shock and for the convenience of elderly and physically disabled individuals who can easily access and control home appliances while staying in one location and without the assistance of others. Our home automation system works smartly by improving the quality of life and giving comfort to consumers thereby reducing the energy demand.