The present systems of energy measurement are error prone and also time and labor consuming. Errors get introduced at every stage of energy measurement like errors with electro-mechanical meters, human errors while noting down the meter reading etc. A networked wireless Automatic Meter Reading (AMR) system based on wireless sensor networks Zigbee and TCP/IP technology is presented in this project, solving the problems existed in the of existing meter reading system. An AMR system based on CC2420 is designed. The hardware structure of system employs distributed structure based on wireless sensor networks, which consist of measure meters, sensor node, data collectors, server and wireless communication network. The tree network topology was adapted in designing system. For a short distance transmission, the data collectors collect data from the meter sensors using the ZigBee communication. For a long distance transmission, from the data collector to the server, system uses TCP/IP protocols.