This paper presents the development of a prepaid energy meter using GSM technology to enhance electrical energy management. The objectives are to develop an energy meter with mobile payment option, mitigation of electricity theft, and reduction of billing errors as compared to the previous energy meters. The metering system consists of voltage and current sensors. The monitoring and control system consists of GSM module, real time clock, relay and an ATMEGA328 microcontroller programmed in C-Language. The meter is designed to have a peak and off peak period with corresponding meter billings for both periods. It also carries out the following instructions: it automatically sends an SMS informing the consumer whose phone contact have been programmed into the system about his/her units at preset times; whenever the energy units is below a certain value or if a payment has been made, an SMS is sent to the consumer; it also disconnect and connect supply respectively through a connected relay. The results obtained shows that the system responded as programmed: the subscriber's phone number and the meter were registered successfully, the meter was recharged and also a message was sent to the subscriber about his/her recharge status from the service provider, by this, the subscriber would have less contact with the meter and the issue of electricity theft through meter by-pass would be reduced along with the time wasted by consumers to line up for the purchase of energy unit.