This study reviews the economics. logistics, and technology underlying the South African experiment of prepaid electricity. Although this experiment has resulted into benefiting large masses of small and dispersed consumers, it has also generated a set of new problems that could not be visualized at the inception of the experiment. The success of this program can be largely attributed to a number of factors. including a good marketing campaign. innovative tariff schedules, better planning and management. and so on. Lessons learned from this experiment are useful for policy-making purposes in other developing countries of Africa and Asia.