- In an autonomous demand-side management (A-DSM) , there is an interaction among the customers in addition to the conventional interaction exists among the utility company and the customers . In this structure , each customer is equipped with an energy consumption scheduling (ECS) unit , embedded inside their smart meters . Every customer's ECS unit tries to minimize energy cost of each customers , automatically . A fair billing mechanism is considered as an incentive for active and effective contribution of the customers in A-DSM programs and minimizing the total energy cost in the smart grid . In this thesis , a distributed billing mechanism is introduced for A-DSM . The proposed mechanism includes the impact of the physical location of each customer load on the distribution system and also , load flexibility and consumption rates . The effect of the physical location of each customer load consists of the impact of each customer load on the power loss and the voltage profile deviation in the distribution system , which are considered as two criteria called power loss and voltage profile deviation sensitivity coefficients . The A-DSM program in this study includes the load reduction and the load shifting approaches , within a 24-hour scheduling time scope . Each customer with the change of its load profile affects profits of the other customers in the distribution system. Therefor , a game theory approach is used to study the customer's behavior . The efficiency of the proposed mechanism is studied on multiple distribution networks via simulation . The results show that , the proposed mechanism, although considers the power loss and reactive power issues of the distribution system, in compare with the existing billing mechanism in this area has desired and acceptable efficiency in the aspect of the total cost reduction and the fairness in cost allocation. Keywords: smart grid , autonomous demand-side management (A-DSM) , billing mechanism , fairness , game theory