Title
Penalizing Pilferage of Electricity and Materials
Law
Republic Act No. 7832
Decision Date
Dec 8, 1994
A Philippine law aims to prevent the illegal use of electricity and theft of electric power transmission lines and materials, outlining unlawful acts, penalties, and procedures for reporting violations, while also providing incentives for reporting and granting private electric utilities the authority to disconnect service without a court order in cases of illegal use or repeated violations.

Q&A (Republic Act No. 7832)

The short title of Republic Act No. 7832 is the "Anti-electricity and Electric Transmission Lines/Materials Pilferage Act of 1994."

Illegal use of electricity includes: tapping or making unauthorized connections to electric lines or service wires; tampering with electrical meters or devices to divert electricity; damaging or destroying electric meters or equipment to interfere with metering; and knowingly benefiting from electricity obtained through such acts.

Theft includes cutting, removing, or carrying away electric power transmission lines or materials without owner consent; possessing such materials unlawfully; and transporting electrical power transmission materials without proper clearance or permit.

Items include steel transmission line towers, woodpoles or concrete poles, aluminum conductor steel reinforced cables over 100 MCM, overhead ground wires, insulators, line hardwares, electrical conductors and related items with a minimum voltage of 69 kilovolts.

Prima facie evidence includes presence of bored holes in electric meter covers, salt or sugar inside meters, wiring connections affecting meter operation, tampered or broken seals, presence of current reversing transformers or shunting wires, mutilation or destruction of metering accessories, and acceptance of bribes to overlook such acts, all attested by authorized officials.

A minimum monetary reward of Five thousand pesos (P5,000) is given to any person who reports violations related to theft of electric power transmission lines or materials to the National Power Corporation or police authorities.

The penalty is prision mayor (imprisonment from 6 years and 1 day to 12 years) or a fine ranging from Ten thousand pesos (P10,000) to Twenty thousand pesos (P20,000), or both at the discretion of the court.

The penalty is reclusion temporal (imprisonment from 12 years and 1 day to 20 years) or a fine ranging from Fifty thousand pesos (P50,000) to One hundred thousand pesos (P100,000), or both at the discretion of the court.

Differential billing is based on estimated unbilled electricity consumption using methods such as highest recorded consumption in prior 5 years, load inspection reports, average consumption before or after drops, and ERB tests. The recovery period is generally up to 60 months or at least one year preceding discovery.

They may immediately disconnect electric service after notifying the consumer when caught in illegal acts or on second discovery of such acts. Disconnection can occur without court order but must respect rules on deposit and restoration upon payment or court ruling.

No injunction or restraining order can be issued unless there is prima facie evidence that the disconnection was made in bad faith or grave abuse of authority. If issued, it takes effect only upon posting bonds equal to the differential billing, penalties, or subject matter of the action.

Utilities may impose surcharges on current bills for contract violations as follows: 25% for first apprehension, 50% for second, and 100% for third and subsequent apprehensions. Services may be discontinued if surcharges are unpaid.

The officer or employee shall be punished with a penalty one degree higher than the penalty for the offense, be dismissed immediately, and be perpetually disqualified from employment in any public or private utility or holding public office.

ERB is tasked to issue rules and regulations for effective implementation of the Act, develop methodologies for calculating illegally used electricity and payments, monitor pilferage recovery reports, fix system loss caps, and determine permissible recovery levels.

System losses refer to electricity lost in transmission and distribution. The Act establishes caps on recoverable system losses for utilities and cooperatives over a phased period, with a view to phasing out pilferage losses as part of these system losses.


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