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
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