This study aims to examine the project quality management practice of prepaid electricity metering system and its effect on customer satisfaction in East Addis Ababa region. Using structured questionnaire and interviews primary data were collected from 399 customers and 49 employees. The project quality management practices among the study sample (mean 2.520 and variance 0.933 value) indicates only moderate level of quality management practices on the project. The study further investigated that lack of quality management guidelines, inadequate technical skills and telecom networ problem in the service centre were big challenges in the implementation of the project. The regression analysis showed accuracy of prepaid electricity meter and bill consumption increases the level of customer satisfaction by 5.4 percentage points (p<0.005) and 8.9 percentage points (p<0.001) respectively. Similarly, it is also found that accessibility and reliability of prepaid electricity meter raise the level of customer satisfaction at least at 5 percentage point (p<0.005). In light of the above findings, Ethiopian Electric utility need to improve project quality management practices by including quality planning, assurance and control. The company also need to increase the level of customer satisfaction focusing on, reliability, accessibility, consumption and accuracy of prepaid electricity metering system.

Keywords: Customer Satisfaction, Ethiopian Electric utility, Project quality management Prepaid electricity metering system.