Nowadays electricity meter reading and billing is conducted manually by a door-to-door system. This system requires large man power and is time and energy consuming. The theft of electricity is a major concern of the transmission and distribution losses in the supply of electricity. To overcome these limitations a prototype module smart energy meter reading system is proposed which includes advanced wireless technology called “ZIGBEE”. In this system, time delay, errors, and theft of electricity is reduced. The Zigbee technology works at low frequency, low data rate hence it is preferred more and its cost is also less. Wireless Electric Meter is used for remote collection of unit count and sending the bill on the consumer's meter screen. Wireless automatic meter reading technology not only saves human resources but improves the accuracy and remote access of a meter. The consumers are no more dependent on conventional power. The proposed meter calculates the net bill, units consumed and theft detection is displayed on the LCD screen. Keywords: Zigbee, man power, smart energy meter.