Most of the energy meters are designed to bill as per the units of energy consumed. These meters need to be manually read by people in order to provide monthly/quarterly bills. We here propose a prepaid energy billing meter. The system is designed to allow amount of energy to be used as long as the account has balance pending. It also allows the operator to recharge the user account using GSM. The system first accepts a recharge of the account, makes only a limited unit of energy available for each recharge, and then interrupts delivery. Prepaid electricity rate meters can be widely used to provide a new, more customized electricity rate billing system that users can replenish when using this facility. It also consists of a GSM modem that allows the operator to charge the meter remotely via SMS messages. We propose innovative electricity billing and demand-based electricity usage schemes. It also eliminates the need for a manual electricity meter reading task.