This thesis is aimed to develop a prototype management system for prepaid electrical power meter. The prepaid meter is important in making the consumer having sense about his/her energy consumption which leads to reduce energy consumption. This proposal is also important in eliminating the difficulties facing the electrical utility employee in getting the reading of the conventional electromechanical meter and eliminating any error incurred in bills issuing. The designed prepaid meter consists of two parts: clients (the prepaid meters which are located in houses) and server which is located in electrical sub-station. The client consists of an RFID reader, credit cards (RFID tags), a microcontroller (which is replaced by a personal computer to complete the project in time), a designed hardware circuit to simulate the operation of a digital meter because there is no digital meter in Iraq and a Wi-Fi wireless gateway. The server consists of a personal computer and a Wi-Fi wireless gateway. The server’s PC includes MySQL database server and a database includes cards information is created. The RFID reader reads the cards ID and sends that ID to the PC which manages that ID and sends it to the server through the wireless gateway. The server checks the validation of that ID in the database and updates its information if necessary then sends back that information. The client’s PC receives the information and takes an action based on it. The credit will be decreased when the consumer uses power. If the credit is less than a specific threshold, a warning message appears to recharge the credit, otherwise the power will be cut-off.