The concept of electronic energy meters has been introduced in the power sector to effectively record the units consumed for billing purposes and also monitor several other factors to reduce power theft and minimize losses that occur due to conventional electromechanical energy meters. This is a multipurpose project that integrates all the functions including a prepaid billing arrangement and automatic message sending system to the utility company. It may please be noted that it is truly not ausable commercial product engaging actual prepaid card but uses a set of switches for understanding the technology implemented behind it. This project uses an Arduino to which a GSM modem is interfaced. From here the message is sent to the phone number that is auto-saved by giving a missed call to the SIM number present in the GSM modem. There are a set of pushbuttons, which are used to load,any recharge amount required. Such arrangement is in lieu of an actual prepaid card for demo purposes. By pushing those buttons one can easily recharge the amount. As soon as the Arduino receives any recharge amount, a switch is set, to deliver power to the load. Thereafter consumption of the load power is calculated by the energy meter, which is interfaced to the Arduino through an Optical Isolator IC. The Arduino program then starts to deduct the recharge amount as per the consumption of load power. Once the recharge amount reaches zero then the Arduino cuts the power supply to the load through a relay driven duly by an NPN transistor and also sends a message to the phone number stored that contains all the billing information. Then again the balance is not available then go to the message in the gsm no available in balance