Traditional electromechanical Energy Meters for electricity are now replaced by digital meters in domestic as well as commercial applications. The trend of automation can be incorporated in presently working digital energy meter to make it smarter. Idea is to design and implement a smart prepaid energy meter prototype having wireless communication facility. The proposed system presents a total electronic three phase four wire energy meter. All power measurements are taken in the digital domain. These readings are transmitted to the mobile of user via wireless GSM technology. User can have the updates of electric energy consumption data on his mobile. Controller is used for controlling all functions of meter. Proposed algorithm for power calculation reduces hardware requirements as power factor is calculated in algorithm which eliminates the need of the zero crossing detector circuit. © 2016 IEEE.