Every management system is trying to make automatic, portable and remote control. This work presents a novel smart energy meter for an automatic and superior metering and billing system. The integration of the Arduino and GSM Short Message Service (SMS) provide the meter reading system with some automatic functions that are predefined. Firstly, we have simulated the project in PROTEUS 8.0 then successfully implemented on the circuit board in laboratory. The proposed energy meter system can incorporate with embedded controller and GSM modem to transmit the data like consumed energy in kWh, generated bill, security services (line Cut/On) over GSM mobile network such as data can be then fed and integrated into existing energy management systems located at power companies or organizations to provide the services among the customers without man-power. Our implemented project is able to provide all required services remotely for metering and billing with high fidelity.