Electronic energy meter is capable of taking readings and can store it into its memory. Taking energy meter reading is time consuming and an expensive task. The meter reader travels for a long distance and take the reading manually to prepare the bill. Consumers have to go to the billing office, stand in a long line and submit the bill. This is a boring job and time consuming also. It can be avoided by remote monitoring of electronic energy meter and prepaid billing system by the use of cash card. In this paper measurement of energy, remote monitoring, preparing of bill and billing system is presented. Low cost ATMEGA8L microcontroller is used here to control the whole system. Sampling of voltage and current is done by it. Then it processes data to achieve power in that instant. Then it stores the value of total energy consumed by the consumer and can calculate energy charge according to the tariff. LCD display is attached with this system to show total energy consumed, power factor and amount of charge etc. Communication between central energy distribution office and energy meter is done through power line. Complex tariff rate set up and cash card based billing is possible in this system. Electronic meter gives high accuracy for nonlinear loads than conventional rotating disc type electro-mechanical meter. Greater accuracy and stability can be maintained in this system.