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The idea behind pre-paid delivery of electricity is to shift the onus of paying the money for electricity in time from the provider to the user. In fact, in such a scheme, since the money for electrical energy used is collected in advance, there is going to be a positive cash flow for the electrical power provider. Also, the costs associated with the generation of the bills, delivery of the bills, and disconnection of the power supply in case the bills aren't paid on time is eliminated.
Prepaid Energy Meters are based on the principle of microcontroller application. The Microcontroller will accept the number of units recharged by the concerned department person, counts the number of units consumed by the customer and as soon as the customer exceeds the recharged amount, it will disconnect the power supply to the customer until the next recharge. Whenever the number of units in microcontroller becomes zero, microcontroller sends a signal to Contact Maker /Breaker circuit which is nothing but the relay and this relay cuts off the power supply to the consumer until next recharge.Figure:Block diagram of on line pre paid energy meter
Bhandup West, Mumbai, Maharashtra 