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In this paper, the design and simulation of Intelligent Prepaid Energy Meter (IPEM) has been presented. The objectives of this paper are: to model an IPEM, to show its reliability on load measurement and to show graphical behavior of energy consumption pattern of different loads connected to power supply. The design methodology is Artificial Intelligent (AI) based-using \"Knowledge-based\" and \"Cognitive simulation\" approach. The intelligence properties and expected results of the proposed digital meter was modeled into the system; and was simulated using Matlab/Simulation tool. Results obtained were very satisfactory.