Prepaid energy meters allow customers to pay for electricity before using it, similar to prepaid mobile phones. With traditional energy meters, a person had to read meters and deliver bills each month, which was time-consuming and error-prone. Prepaid meters address these issues by automatically cutting off power when credit is exhausted, eliminating billing delays and disputes. The prepaid system uses smart cards or tokens to recharge the meter remotely via a microcontroller, LCD display, GSM modem and relays. This makes the process more convenient and efficient compared to traditional billing methods.