Abstract— This pap er presents a practical solution for two existing problems in traditional electrical e nergy measurements. The first problem is the manual electrical billing system; so far, some countries are still adopting a manual technique with a high percentage of human errors and much complains from the consumers’ side and a lot of work from the authorities’ side. The second problem is having a low power factor at most of the domestic loads and some main commercial ones. Low power factor causes more current to flow in the network leading to an overheating of transformers and cables, and an increase of the core losses of transformers; in addition, less power factor means more burned fuel and more environment pollution. In This study, an automated solution for both problems is introduced, where two control units are added to the already existing three phase energy meters. The first unit solves the problem of manual billing by automatically calculating the monthly bill and sending monthly SMS messages to the consumers as well as authorities. The second unit solves the problem of low power factor by injecting reactive power using capacitor bank at the end load points to maintain a power factor of 0.95 at all load cases. A penalty will be added to the monthly calculated bill once the above value is violated. A prototype was implemented proving the capability of introducing both solutions using existing meters with a reasonable added cost. Keywords: Smart Metering, Power Factor, Electricity bill, Raspberry pi, Energy meters, Capacitor bank Received: September 30, 2019. Revised: April 27, 2020. Accepted: May 12, 2020. Published: June 7, 2020 1. Introduction Some countries especially those who are gifted with much fuel are still using fossil fuel as a source of heat energy in power sta tions to produce electricity. Since the renewable energy resources in tho se countries are quite limited, leaving this process poorly supervised or monitored will create a lot of problems in the future [1- 2]. Since the demand for power is increasing every day, due to the increase of population in the last recent years, urgent actions should be taken regarding preserving and protecting this source to last longer than anticipated. S o far, some countries are still using a manual electrical energy billing system, and that could result in loss of revenues. This loss mainly comes due to measurement errors, calculation errors, as well as lack of confidence between consumers and authorities. To solve this problem, many countries started u sing smart electrical energy meters as they have much higher capabilities compared to the traditional ones [3- 5]; however, its high cost, expensive infrastructure, complicated technology, in addition to electricity theft and sudden electricity cutoff, still act as strong barriers toward replacing traditional meters with smart and prepaid ones. An economic solution could be enhancing the traditional energy meters to give it the capability of having an a utomated billing system in addition to some other needed features [6-10]. These enhancements would allow the existing energy meters to perform in an ad vanced way, save a lot of money and time, and avoid a lot of technical complications. At a basic level, the power factor of an electrical device could be defined as the ratio of power drawn by the device from the main supply to the ac tual power consumed by the device. An electric or electronic device is said to be ideal if it c an consume all the power that it draws. In other words, an ideal device has got unity power fac tor. A non- linear load with poor power factor will generate harmonics. Harmonics and poor power factor have got many undesirable effects. The continuous use of non- linear loads in domestic side is rapidly increasing and that would result in lowering the power factor and increasing network losses [11-14]. Enhancing the power factor at the end load points will minimize the overall current in the electrical network leading to less magnetic losses, less fuel consumption, and less air pollution. In this paper, an enh anced three ph ase electrical energy metering system is intro duced, where a microcontroller with two units is added to the already existing three p hase electrical energy meters. The first unit solves the problem of manual billing by automatically calculating the monthly bill and sending monthly SMS messages to consumers and ministry of ALI M. EL-RIFAIE, BILEL NEJI, IMAD NEJDAWI College of Engineering and Technology American University of the Middle East Egaila, KUWAIT Three Phase Enhanced Electrical Energy Metering System WSEAS TRANSACTIONS on ENVIRONMENT and DEVELOPMENT DOI: 10.37394/232015.2020.16.45 Ali M. El-Rifaie, Bilel Neji, Imad Nejdawi E-ISSN: 2224-3496 448 Volume 16, 2020