The present system of energy billing is error prone and also time and labor consuming. Errors get introduced at every stage of energy billing like errors with electro-mechanical meters, human errors while noting down the meter reading, and errors while processing the paid bills and the due bills. There are many cases where the bill is paid and then is shown as a due amount in the next bill. There is no proper way to know the consumer s maximum demand, and usage details. The major drawback of a post paid system is that there is no control of usage from the consumer s side. There is a lot of wastage of power due to the consumer s lack of planning of electrical consumption in an efficient way. Since the supply of power is limited, as a responsible citizen, there is a need to utilize electricity in a better and efficient way. The distribution company has to receive huge amounts in the form of pending bills, which results in substantial revenue losses. The remedy for this drawback is prepaid energy meter means pay first and then use .