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The main problem of the conventional metering system is that person from utility has go to area by area and read the energy meter of every house and handover the bills. According to that reading consumer pays the bill. Then, when the customer failed to pay bills for a long period of time one person from utility has go to area by area and remove the fuse to disconnect the consumer premises from the distribution feeder. This process can be replaced by using prepaid energy meter. Many times errors like extra billing or notification from utility are given frequently even bills are paid regularly. In this paper, Microcontroller based prepaid measuring system to calculate the power consumption and GSM circuit for Short Messaging Service to the user is used.