The Purpose of the research are to find out the effect of product quality and service quality on customers’ satisfaction toward prepaid electricity in PT PLN (Persero) Kudus Region. The methods of Collecting data used in this reseach were interview, questionnaire, and literature studies. The analysis for doing the research is regression, especially multiple liniear regression analysis. The sampling technique used in this study are purposive and incidental sampling. The samples are 100 respondents. The result of this study is that the calculation of coefficients regression showed that Y = 2,225 + 0,417X1 + 0,026X2. It means that the result of regression has given positive influence on customers’ satisfaction toward prepaid electricity , and the influence of product quality on customers’ satisfaction is greater than the service quality. The Coefficient determination is 0.321, which means that 32,1% of customers’ satisfaction toward prepaid electricity could be explained by the product quality and service quality. Meanwhile, the rest of the 67.9% is influenced by other variables which are not included in this study