This paper presents the development of a prepaid energy meter system tailored for digital meters, leveraging an Arduino microcontroller and a GSM module. The system innovatively adapts the concept of prepaid mobile phone services to electricity management. Users can conveniently recharge the meter balance, with the system seamlessly monitoring energy usage and issuing SMS alerts for low balance, disconnection due to depleted balance, reconnection upon recharge, and reminders for potential recharges. Central to the system is the integration of a standard digital electricity meter with the Arduino platform. An optocoupler serves to isolate the Arduino's digital input from the meter's pulse output, typically indicated by an LED. This pulse signal acts as a basis for accurate energy consumption computations. Furthermore, the inclusion of a GSM module enables bidirectional communication between the system and the user's mobile device for balance updates and remote control functionalities. The paper elaborates on the selection of components, encompassing hardware choices, circuit diagrams, and Arduino details. With its emphasis on affordability and user-friendliness, this design offers a practical solution for managing electricity consumption, fostering responsible energy usage, and potentially streamlining billing procedures. Along with detecting fire and object for the safety of energy meter.