The conventional mechanical energy meter is based on the phenomenon of “Magnetic Induction”. It has a rotating aluminium Wheel called Ferriwheel and [[wysiwyg_imageupload::]]many toothed wheels. Based on the flow of current, the Ferriwheel rotates which makes rotation of other wheels. This will be converted into corresponding measurements in the display section. Since many mechanical parts are involved, mechanical defects and breakdown are common. More over chances of manipulation and current theft will be higher.
Electronic Energy Meter is based on Digital Micro Technology (DMT) and uses no moving parts. So the EEM is known as “Static Energy Meter” In EEM the accurate functioning is controlled by a specially designed IC called ASIC (Application Specified Integrated Circuit). ASIC is constructed only for specific applications using Embedded System Technology. Similar ASIC are now used in Washing Machines, Air Conditioners, Automobiles, Digital Camera etc.