In this work, a method is outlined to convert a conventional electro-mechanical meter into a digital power meter as part of an Automated Meter Reading (AMR) system using a simple and cost-effective technique. A conventional electro-mechanical meter was converted to emit digitised pulses with the addition of an optical encoder, allowing automatic transmission of meter reading data and detection of meter tampering. In testing the proposed AMR system, the meter readings as read from the LCD were found to offer an accurate representation of the total power consumed. Further improvements suggested to enhance the functions of the AMR system, including load management and pre-payment. The proposed meter offers substantial savings for electric utility companies as well as enabling users to take advantage of fully automated meter readings.