The antiquated approach for depositing of bills for consuming of electricity results in undesirable faults and wastage of time. So this paper represents the prepaid electricity meter using GSM Module to facilitate power utility and minimize the labor work.. Prepaid electricity meter can be used for monitoring of undeveloped and control household energy meter. This technique gives the data about the recharge amount of the consumer and stops the energy supply when amount of balance goes below than the threshold value .The data gets delivered and received by concerned energy Provider Company by the GSM network. The body which gives the supply receives the reading within few seconds without visiting consumer. Prepaid electricity meter reduces the number of regular visit. Prepaid electricity meter not only decreases labor cost but also increase meter reading efficiency and save huge amount of time .In traditional method faults are inevitable at every stage of depositing bill. Some faults are human errors at the time of noting the meter reading and while processing the paid bill .The research paper elaborates and describes the utility of prepaid electricity meter which is advantageous for the consumer to manage energy usage, to minimize faults and bill processing.