This paper presents smart and optimal way of allocating power to the utility using global system for mobile communication module-based remote automatic energy meter reading system. The designed device is installed with the energy meter at consumer premises. A smart communication is established between service provider and consumer using GSM module which is capable of calculating the energy consumed at different tariff and time. An artificial neural network using back-propagation approach is employed to obtain optimal allocation of service provider to meet the objective function. The novel idea of smart energy metering not only reduces the cost of energy consumption but also helps in proper repayments, optimal usage of power based on time of day tariff, and theft control with higher reliability and greater flexibility. A smart real-time prototype of the automatic energy reading system was built to demonstrate the effectiveness and efficiency of automatic meter reading, billing, and notification through the use of global system for mobile communication network. © 2020, Springer Nature Singapore Pte Ltd.