Electricity Pilferage: Legal aspects

What is electricity pilferage?

In the Philippines, electricity pilferage refers to the unauthorized and illegal use of electric power. Let’s break down the specifics:

Illegal Use of Electricity:

It is unlawful for any person, whether natural or juridical (public or private), to engage in the following acts:

1. Tapping into Electric Lines: Making unauthorized connections with overhead lines, service drops, or other electric service wires without the consent of the private electric utility or rural electric cooperative.

2. Unauthorized Connections: Creating connections to existing electric service facilities of duly registered consumers without their consent or the electric utility’s authority.

3. Tampering with Meters: Using tampered electrical meters, jumpers, current reversing transformers, shorting wires, or other devices that interfere with accurate metering, resulting in electricity theft or wastage.

4. Meter Damage: Damaging or destroying electric meters, equipment, wires, or conduits to disrupt proper metering.

5. Benefitting from Stolen Electricity: Knowingly using or receiving direct benefits from electric service obtained through any of the above acts.

6. Theft of Electric Power Transmission Lines and Materials: This involves unlawful actions related to electric power transmission lines and materials: Cutting, removing, or damaging electric power transmission lines or meters from towers, poles, installations, or storage locations without the owner’s consent. Unauthorized possession or storage of electric power transmission lines or meters. Moving or transporting electrical power transmission lines or materials without proper clearance or permit from the owner or relevant authorities.

RA 7832, enacted in 1994, addresses electricity pilferage by penalizing these offenses and providing remedies for electric service providers to protect themselves1. These remedies include immediate disconnection of service, criminal prosecution, and surcharges.

What does disconnect immediately by the electric service provider really mean?

In the case of Manila Electric Company v. Spouses Sulpicio and Patricia Ramos, GR 195145, Feb. 10, 2016, our Supreme Court, through Associate Justice Arturo Brion, discussed the requisites for an electric service provider to be authorized to disconnect its customer's electric service on the basis of alleged electricity pilferage:

"The distribution of electricity is a basic necessity that is imbued with public interest. Its provider is considered as a public utility subject to the strict regulation by the State in the exercise of its police power. Failure to comply with these regulations gives rise to the presumption of bad faith or abuse of right.

"Nevertheless, the State also recognizes that electricity is the property of the service provider. RA 7832 was enacted by Congress to afford electric service providers multiple remedies to protect themselves from electricity pilferage. These remedies include the immediate disconnection of the electric service of an erring customer, criminal prosecution, and the imposition of surcharges. However, the service provider must avail of any or all of these remedies within legal bounds, in strict compliance with the requirements and/or conditions set forth by law.

"Section 4(a) of RA 7832 provides that the discovery of an outside connection attached on the electric meter shall constitute as prima facie evidence of illegal use of electricity by the person who benefits from the illegal use if the discovery is personally witnessed and attested to by an officer of the law or a duly authorized representative of the Energy Regulatory Board (ERB). With the presence of such prima facie evidence, the electric service provider is within its rights to immediately disconnect the electric service of the consumer after due notice.

"This Court has repeatedly stressed the significance of the presence of an authorized government representative during an inspection of electric facilities, viz.:

"The presence of government agents who may authorize immediate disconnections goes into the essence of due process. Indeed, we cannot allow respondent to act virtually as prosecutor and judge in imposing the penalty of disconnection due to alleged meter tampering. That would not sit well in a democratic country. After all, Meralco is a monopoly that derives its power from the government. Clothing it with unilateral authority to disconnect would be equivalent to giving it a license to tyrannize its hapless customers.

"Additionally, Section 6 of RA 7832 affords a private electric utility the right and authority to immediately disconnect the electric service of a consumer who has been caught in flagrante delicto doing any of the acts covered by Section 4(a). However, the law clearly states that the disconnection may only be done after serving a written notice or warning to the consumer.

"To reiterate, RA 7832 has two requisites for an electric service provider to be authorized to disconnect its customer's electric service on the basis of alleged electricity pilferage: first, an officer of the law or an authorized ERB representative must be present during the inspection of the electric facilities; and second, even if there is prima facie evidence of illegal use of electricity and the customer is caught in flagrante delicto committing the acts under Section 4(a), the customer must still be given due notice prior to the disconnection.

Accordingly, the electric service provider must strictly comply with the requirements RA 7832, or the Anti-Electricity and Electric Transmission Lines/Materials Pilferage Act of 1994, as discussed above, before it can exercise its rights to immediately disconnect the electric service of its consumers on the basis of electricity pilferage. That is to say, the electric service provider must comply with the twin requirements of government-assisted/witnessed inspection and prior notice of disconnection. Otherwise, the electric service provider may be held liable for damages that its consumers may suffer by virtue of the unlawful disconnection.

Source: Manila Times and Ziggurat Real Estate

Philippines aims to double solar, quadruple share of wind in power output by 2030

The Philippines plans to boost the share of solar in power output to 5.6% in 2030 from 2.4% in 2024, and wind to 11.7% from 3.1%, according to a government presentation, potentially making the archipelago’s grid among the cleanest in the region.

The southeast Asian nation expects higher share of solar and wind to offset a decline in the share of other clean sources such as hydropower and geothermal energy, helping non-fossil sources account for 35% of power generation by 2030.

Hydroelectricity’s share is set to fall from 10% to 9.1%, while geothermal energy is expected to account for 7.7% of overall output by 2030, compared with 8.9% in 2024, Mylene C. Capongcol, assistant secretary at the Philippines Department of Energy, said in the presentation, at the Renewable Energy Markets Asia conference.

Philippines plans to achieve the targets by doubling solar capacity and tripling wind capacity over six years, Ms. Capongcol added in the presentation, which was shared with Reuters.

The country is betting on a rapid build out of offshore wind farms, which have high upfront costs. Spiralling costs amid high inflation have resulted in some saw developers cancel or pause projects in the U.S. and Britain last year.

The archipelago also expects to add 1,200 megawatts of Nuclear capacity by 2032, Ms. Capongcol said in the presentation, adding that the country plans to upgrade its transmission infrastructure to help manage the addition of renewables.

The energy department will also create a long-term program to facilitate the voluntary early decommissioning or repurposing of over 3.8 GW of coal-fired power plants which are more than 20 years old, Ms. Capongcol said.

Philippines is targeting reducing the share of coal in power generation to 47.6% by 2030, from about 60% currently.

Source: Business World

Charting a course for energy security

Midway through the dry season, the Philippine Atmospheric Geophysical and Astronomical Services Administration has already issued warnings of dangerously escalating heat indexes. Consequently, this forecast signals a looming surge in energy demand, posing a significant challenge for the country amid ongoing issues with power supply.

Last week’s successive Red and Yellow Alert declarations by the National Grid Corp. of the Philippines serve as a stark reminder of the strain on our energy grid, foreshadowing what may come in the days ahead as Filipinos ramp up the use of cooling appliances to battle the scorching heat.

The declaration of a Red Alert status for three consecutive days last week on the Luzon grid signaled a critical imbalance between energy supply and demand, signaling imminent rotating power interruptions. Department of Energy Secretary Raphael Lotilla attributed these situations to unplanned power plant outages triggered by “extremely high temperatures.”.

Fortunately, in Metro Manila and nearby areas served by Meralco, the Interruptible Load Program (ILP) played a crucial role in mitigating the impact of these shortages. Data from Meralco showed that through the ILP, nearly two million households were shielded from rotating power interruptions, thanks to the voluntary grid de-loading by participating companies.

Without the steadfast support of the private sector, thousands of Filipino households would have endured brownouts amidst the crippling heat.

The ILP is a government program that provides incentives to companies that opt to run their generator sets during Red Alert instances, thus reducing their grid dependency. This proactive measure not only alleviates strain on the grid but also serves as a lifeline for households without generator sets, shielding them from debilitating power disruptions. Hopefully, in the spirit of “bayanihan,” more companies will heed the call and enroll in the ILP in the days to come.

However, while the ILP proved effective in averting immediate crises, it is important to note that this is only a stop-gap solution.

With economic growth driving continued increase in energy demand, the trajectory is clear: without increased capacity, the threat of rotating power interruptions will persist.

It is important to emphasize that power interruptions pose more than just an inconvenience – they imperil economic growth, pose risks to personal and public health, and threaten the overall well-being of communities.

There is an urgent need to bolster our energy infrastructure by accelerating the development and operation of new power plants.

Priority must be directed toward cultivating an investment-friendly environment for the establishment of new power plants, while concurrently implementing measures that enable swift action to bolster our energy capacity. To effectively address this challenge, we must adopt a multifaceted approach, which includes prioritizing cleaner energy sources like liquefied natural gas and renewables. Additionally, exploring new technologies such as nuclear energy can significantly contribute to achieving this collective goal.

To expedite progress, collaboration between the public and private sectors is essential. Together, we can implement initiatives to expand energy capacity, diversify our energy supply portfolio and foster sustainable growth.

By prioritizing sustainability and innovation, alongside strategic infrastructure development, we can achieve lasting energy security for our nation.

Source: Philstar