Abstract� The demand for energy is increasing as a result of the growth in both population and industrial development. To improve the energy efficiency, consumers need to be more aware of their energy consumption. In recent years, utilities have started developing new electric energy meters which are known as smart meters. A smart meter is a digital energy meter that measures the consumption of electrical energy and provides other additional information as compared to the traditional energy meter. The aim is to provide the consumer and supplier an easy way to monitor the energy. Smart meters are considered a key component of the smart grid as these will allow more interactivity between the consu mers and the provider. Smart meters will enable two-way and real-time communication between the consumers and the provider. Considering the increase of electricity demand in Saudi Arabia, smart meters can decrease the overall energy consumption. This paper presents the development of a GSM and ZigBee based smart meter. This meter can measure the energy and send the information to the service provider, who can store this information and notify the consumer through SMS messages or through the internet.I.called smart and they are also the difference between the traditional energy meter and the smart meter. The idea of AMR technology is to do the meter reading automatically and accurate. The benefit of AMR is reducing the meter cost to the supplier and billing the customers with actual meter readings.In addition, AMR will increase the accuracy of the readings and it can allow frequent reading [2]. Smart meters are able to send the readings over communication lines and recognize their addresses and to activate/deactivate internal modules. To have that capability, AMR requires a specific infrastructure which would make it bidirectional. Such an infrastructure is called AMI. The communication medium in an AMI system must ensure the communication between the smart meters and the central computer at the service provider. The AMI network has the ability to register meter points, communicate into the customer premises, service connecting and disconnecting and other