Abstract: In this research paper the proposed method is a two way communication between electricity board and consumers. It focuses on the measurement of energy consumption, providing data for the system software and a system for payment at your place. In this system the energy is measured in units and the data is fed to a remote server using a smart energy meter, and a software solution is provided to detect any illegal activities and to control the power supply. The data is send to server by using same communication method; the consumer can pay the bill at home by using a mobile application or through internet. The android app is virtual energy meter. It helps the user to view his energy meter, get notification from office etc... The meter reading, billing, notifying, disconnection and reconnection can be viewed and controlled from office without visiting the place. In the case of broken transmission line due to adverse weather condition, the authorities get notified immediately and can take corrective measures. A single phase energy meter has been implemented using ARDUINO microcontroller and communication part has been implemented using GPRS communication.

Keywords: AMI, GPRS, Arduino, Android, Virtual Energy Meter, Theft Detection.