QuestionsQuestions (Republic Act No. 7832)
Section 2 makes it unlawful: (a) to tap/make/cause connections to overhead lines, service drops, or wires without the utility/RECO’s authority or consent; (b) to tap/make connections to a registered consumer’s electric facilities without that consumer’s or the utility’s consent/authority; (c) to tamper, install, or use tampered meters/devices (e.g., jumper, current reversing transformer, shorting/shunting wire, loop connections) that interfere with accurate registration or divert electricity; (d) to damage or destroy meters/equipment/wires/conduits so metering is interfered with; and (e) to knowingly use or receive the direct benefit of electricity obtained through those acts.
The core elements are the unauthorized cutting/removal/taking/carrying away/removal/transfer, storage/possession/keeping, or moving from one place to another of “electrical power transmission line/material” or meter (as defined in Section 3), without the owner’s consent/clearance/permit where required, regardless of profit or gain.
It includes specific transmission steel towers, woodpoles/concrete poles, ACSR conductors in excess of 100 MCM, overhead ground wires (defined strands and diameter), porcelain/glass shell insulators, and various line hardwares/materials made for safe/reliable operation, with a minimum voltage of 69 kV.
Section 4 lists circumstances that, when personally witnessed and attested by law officers or a duly authorized ERB representative, constitute prima facie evidence that the person benefitted thereby committed illegal use under Section 2, enabling immediate disconnection (after notice), preliminary investigation and filing of charges, and lifting of temporary restraining orders or injunctions against the utility/RECO.
Examples include: (1) bored hole on the glass cover/back/any part of the meter; (2) salt/sugar or similar elements inside the meter that result in inaccurate registration; (3) wiring connection affecting normal operation/registration; (4) tampered/broken/fake seal or mutilated/altered meter recording chart/graph/log; (5) current reversing transformer/jumper/shorting/shunting wire/loop connection or similar devices inside the premises/over which the consumer has control; (6) mutilation/alteration/reconnection/disconnection/bypassing/tampering of instruments/transformers/accessories; (7) destruction/attempt to destroy integral accessories of the metering device box.
Possession/control/custody of transmission line/material by a person not engaged in transformation/transmission/distribution or manufacture of such materials is prima facie evidence that the line/material is the fruit of the offense under Section 3, and it may be confiscated.
The utility/RECO may disconnect immediately after serving a written notice or warning, without needing a court or administrative order; in the second-discovery scenario, disconnection is also allowed (with prior notice on first discovery). Restoration is generally denied, subject to specific provisos (e.g., deposit of differential billing in certain cases).
The consumer may deposit the amount representing the differential billing. If the court finds no illegal use was committed by the same person, the deposit is credited against future billings with legal interest, and the utility must pay the person double the value of the payment/deposit with legal interest; that amount is also creditable against future billings, without prejudice to other actions under existing laws.
Upon final judgment, the same person must pay the utility/RECO double the value of the estimated electricity illegally used (differential billing), and this is based on the statutory differential billing methodology.
It is the amount to be charged for unbilled illegally consumed electricity using approved methodologies, based on determining: (1) monthly consumption basis (e.g., highest recorded monthly consumption within five years, estimated consumption from load inspection, etc.) and (2) period to be recovered (e.g., time of abrupt/abnormal drop, or period after changes like meter/seal change/reconnection, or up to maximum 60 billing months). Statutorily, the recovery period cannot be less than one (1) year preceding the date of discovery.
A monetary reward scheme with a minimum amount of P5,000 is given to any person who reports to the NPC or police authorities any act that may constitute a violation of Section 3. DOE, consulting with NPC, issues the implementing guidelines within 30 days from effectivity.
Section 7(a): violation of Section 2—prision mayor or a fine of P10,000 to P20,000, or both (discretion of court). Section 7(b): violation of Section 3—reclusion temporal or a fine of P50,000 to P100,000, or both (discretion of court).
The officer/employee is punished with a penalty one degree higher than the penalty provided for the offense, and is forthwith dismissed and perpetually disqualified from employment in any public/private utility or service company and from holding public office. Additionally, if the offense is committed by virtue of the acts listed in Section 4 with another act also committed, the next higher penalty degree applies.
A private utility/RECO may impose surcharges in addition to the value of electricity pilfered: first apprehension—25% of the current bill; second apprehension—50%; third and subsequent—100%. Apprehension means discovery of the Section 4 circumstances in the consumer’s establishment. The utility may discontinue service if the consumer is in arrears in paying the surcharges.
No injunction or restraining order shall be issued unless there is prima facie evidence the disconnection was made with evident bad faith or grave abuse of authority. If still issued, it’s effective only upon filing of a bond equivalent to differential billing, penalties, and other charges or total value of the subject matter. It is automatically refused or dissolved upon filing a counter-bond of similar amount by the utility.
Section 10 sets time-phased caps. For private utilities: 14.5% (end of year 1), 13.25% (year 2), 11.75% (year 3), 9.5% (year 4). For rural electric cooperatives: 22% (year 1), 20% (year 2), 18% (year 3), 16% (year 4), 14% (year 5). The ERB may reduce further (not below 9%); and it may reduce/phase out technical/design losses as components of system losses.