The purpose of this study was to investigate the effect of service quality on customer satisfactionrnin the case of the billing system on Ethiopia Electric Utility. The study used quantitative researchrnmethod and employed explanatory survey design to objectively answer the research questions.rnFor achieving the study objective, 386 sample respondents were selected through simple randomrnsampling technique. Accordingly, data were collected through self administered questionnairernfrom sample respondents. Out of 386 respondents, workable data were obtained from 358rnrespondents. The data collected from the questionnaire were analyzed using. Statistical toolsrnsuch as mean, standard deviation, correlation, and multiple regression analysis. The results ofrnthis study indicate that, except reliability the four service quality dimensions (tangibility,rnassurance, empathy and responsiveness) have positive and significant relationship with customerrnsatisfaction. The finding of this study also indicates that majority of the respondents wererndisagree with the five dimensions of service quality. On the other hand the customers wererndissatisfied with the overall satisfaction the firm billing methods. The results also indicate thatrnunlike reliability the four service quality dimensions (tangibility, empathy, assurance andrnresponsiveness) have positive and significant effect on customer satisfaction. Based on thernfindings of the study, the researcher forwards some recommendations to the EEU should workrnmore in improving the low scored means of the five dimensions for EEU billing method