Now a days, electricity power consumers have increased in every sectors like rural, urban, residential, commercial and in industrial area. Hence it is very important to ensure proper use of energy to generate accurate bills, invoices and try to reduce the frauds. Electromagnetic watt meter reading done by human operator requires huge number of labor operators. They may be prone to reading error, also has errors while recording what was read, during data entry. It is hard to access the meters at rural accounts, indoor meters and meters with obstacles. To avoid this here we are going to introduce automatic meter reading concepts (AMR) which automatically collect the consumption of energy and then the system transfer that collected data to a central database for billing. Because of this expenses are reduced on meter reader, his periodic trips to each house to read a meter in case when in the first trip reading is not available. With this automation speed, accurateness and effectiveness has increased. Here transistor transistor logic (TTL) serial camera is used to capture the image and wirelessly transfer this to server Personal Computer (PC) where it undergoes processing to extract digits and with reference to previous month data base new bill is generated with tariff consideration.