Besides air and water, electricity is one of the most important elements in human life nowadays. electricity is needed to make all the electrice and electronic devices working properly. In Malaysia. Tenaga Nasional Berhard (TNB) is responsible in supplying the elctricity to all houses and premises this paper describes the development of power meter reading system with integration with GSM network. The device created can help Tenaga Nasional Berhard to evercome their problems in capturing meter reading as it incurs high cost. This project concentrates on designing a system that can send meter reading from the user premises to Tenaga Nasional Berhard office via SMS the data transmitted will be received by the database system to analyze, generate a bill and store the data. The implementation of the project involved two different components software and hardware. Microcontroller PICI6F877A was used in this project and was programmed using Mplab software. The program and the designed circuit were simulated using proteus software to make sure it was working properly. The prototype meter was connected to the circuit to send the data using the GSM modem at the final stage, the complete system was integrated within its hardware and software to turn these to components into one complete system. Currently, the prototype is suitable to be apply in a rural environment due to the individual house is scattered randomly at particular region. Thus the prototype could ease the authoried to manage the electrical bill efficiently.