This project aims to develop a smart energy meter which has many advantages like monitoring and controlling the energy meter at anywhere and at any place. Our project also called as pay first and then use it because here the user first has to pay the bill after that only they can consume the electricity. We know that each user has different kind of load demands and based on it we can recharge in number of units (KWh). The energy we are consuming and based on those pulses from the energy meter, microcontroller decrements the number of units and displays on LCD the remaining units we can use. The load gets disconnected when the units become zero and it is reconnected when the user recharges it. Our project will be very useful for the electricity board and also the user because this project gives the live update about the energy usage of the user through the message. GSM (Global system for mobile communication) will help to send and receive this information to the user. This system helps us to identify the energy losses of the electricity board to a large extent.