Title
Implementing Rules of RA 7832 on Electricity Theft
Law
Erb
Decision Date
Jul 7, 1995
The Implementing Rules and Regulations (IRR) of the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act of 1994 aim to address the illegal use of electricity and theft of electric power transmission lines and materials in the Philippines, providing definitions, prohibitions, penalties, and an incentive scheme for reporting violations.

Questions (ERB)

The IRR was adopted pursuant to Section 14 of RA 7832. Its purpose is to implement the Anti-Pilferage of Electricity and Theft of Electric Transmission Lines/Materials Act of 1994 by providing detailed rules on prohibited acts, evidence, disconnection, penalties, computation of differential billing, and related procedures.

“Apprehension” means discovery of any of the circumstances enumerated in Section 4 of RA 7832 in the establishment or outfit of the consumer, personally witnessed and attested to by the consumer or a duly authorized ERB representative, or any officer of the law (as the case may be).

They include: (1) tapping/making connections with overhead lines/service drops without prior authority/consent; (2) tapping connections to existing facilities of a registered consumer without the consumer’s and utility’s consent/authority; (3) tampering/installing/using tampered meter or devices that interfere with proper metering or cause diversion/waste; (4) damaging/destroying meters or related equipment/conduits as to interfere with metering; and (5) knowingly using/receiving direct benefit from electricity obtained through the above acts.

Illegal Use of Electricity focuses on unlawful acts affecting metering/consumption, such as tapping lines for service, tampering meters/devices, and knowingly benefiting from such diversion. Theft of electric power transmission lines/material focuses on cutting/removing/transporting/possessing transmission lines/materials/meters without the owner’s consent and without required permits/clearance.

They include: (1) cutting/sawing/splitting/removing transmission line/material or meter from lawful sites without owner consent; (2) taking/carrying away/removing/transferring such lines/materials/meters from installations or sites without owner consent; (3) storing/possessing/keeping such lines/materials/meters in one’s premises/custody/control without owner consent; and (4) loading/carrying/shipping/moving them from one place to another without securing clearance/permit from the owner/NPC regional office (as applicable).

Examples include: bored hole on meter glass cover or parts; salt/sugar or other elements inside meter causing inaccurate registration; wiring connections affecting normal operation/registration; absence of ERB/NEA seal or presence of tampered/broken/fake seal or mutilated meter chart/log; presence of current reversing transformer/jumper/shorting/shunting wire/loop connection; destruction or attempt to destroy integral metering accessories; acceptance of money/consideration by utility officer/employee to not report tampering.

It serves as basis for: (a) immediate disconnection by the utility/cooperative after due notice; (b) holding preliminary investigation by the prosecutor and subsequent filing in court; and (c) lifting any temporary restraining order or injunction that may have been issued against the utility/cooperative.

An “ERB authorized representative” is one assigned to test electric meters or inspect lines/facilities of any distribution entity, or specially authorized by the head of the main regional ERB office. An “officer of the law” includes persons charged with maintenance of public order and protection of life/property, such as barangay officials/leader, barangay community brigades, barangay policemen, PNP policemen, municipal councilors/mayor, and provincial fiscal.

Possession/control/custody of transmission line/material by a person not engaged in transformation/transmission/distribution or in manufacturing such materials is prima facie evidence that the lines/materials are the fruit of the offense under Rule II, Section 2. The items may be confiscated from the possessor.

Immediate disconnection without a court/administrative order is allowed when: (1) the owner/occupant or someone acting for him is caught in flagrante delicto doing acts enumerated in Rule III, Section 1, provided written notice/warning is served prior to disconnection; or (2) the circumstances in Rule III, Section 1 are discovered for the second time, provided written notice/warning was issued upon the first discovery.

It must indicate: consumer name/address/account number; date of apprehension; findings of fact; amount of energy pilfered in kWh; and the amount representing differential billing, including: (1) computation of unbilled consumption in kWh; (2) period used for differential billing computation; and (3) the latest inspection report prior to apprehension.

The utility/cooperative must not immediately disconnect or must immediately restore service upon deposit by the denied person with the utility/cooperative or competent court of the amount representing the differential billing.

If there’s final judgment of violation, the accused must pay the utility/cooperative double the estimated illegally used electricity (differential billing), plus prision mayor or a fine of ₱10,000 to ₱20,000 or both, at court discretion. If committed by or in connivance with a utility officer/employee, the officer/employee is punished one (1) degree higher and is dismissed and perpetually disqualified from working in any utility/service company and from holding public office.

Unbilled consumption may be computed using specified methodologies depending on which prima facie circumstance was found. Methods include: estimated monthly consumption based on load/inspection; highest recorded monthly consumption in prior periods; higher consumption relative to drastic drops; results of ERB test at discovery; estimates based on inspection report; and highest recorded consumption within specified months/years before/after discovery.

Differential billing is: unbilled consumption in kWh × period covered × the current rate at the time of apprehension. The period to recover depends on factors like changes in service connection (meter/seal/reconnection/parts), or abrupt drop in consumption; otherwise, a maximum of 60 billing months up to discovery may be used, with a minimum of one year preceding discovery, subject to the consumer’s proof for shorter periods.


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