Implementing Rules of RA 7832 on Electricity Theft

Clarifies key terms such as ERB (Energy Regulatory Board), DOE, NEA, NPC, Utility (both private and government-owned), Cooperative (Rural Electric Cooperative).
Defines "Electric Power Transmission Line/Material" with specifications including voltage minimums and types of materials.
Defines "Differential Billing" for unbilled electricity consumption.
Defines what constitutes "Apprehension" and conditions when power sold by NPC or another entity is considered direct-to-consumer.
Defines "Current Bill" and "Current Rate" for billing purposes.

Unlawful to tap or connect to electric lines or existing service without proper authority.
Prohibits tampering with electrical meters or using devices that interfere with proper metering.
Prohibits damaging equipment interfering with metering.
Prohibits knowingly benefiting from illegal electric service obtained through such means.

Prohibits unauthorized cutting, removal, possession, storage, or transportation of transmission line materials or meters.
Requires a clearance/permit from the owner or NPC for moving electrical transmission materials.

Specific conditions that constitute prima facie evidence include tampered meters, altered seals, wiring connections affecting metering, presence of devices indicating meter tampering, etc.
Such evidence justifies immediate disconnection, preliminary investigation, or lifting court orders against disconnection.
Possession of transmission materials without engagement in power activities is prima facie evidence of theft.

Monetary reward (minimum of P5,000) for reporting theft of transmission lines/materials.
DOE and NPC to issue guidelines for implementation.

Utility/cooperative may immediately disconnect electric service without court order if illegal use is witnessed or circumstances recur after written notice.
Written notice must specify consumer details, date of apprehension, findings, estimated pilferage, and differential billing.
Services to be restored upon deposit equal to differential billing.

If illegal use is not proven, deposit refunded with interest plus double payment by utility with interest.
Violators of illegal use pay double estimated electricity value plus prison or fine.
Penalties increase by one degree if officers/employees of utilities are involved; dismissal and perpetual disqualification also imposed.
Utilities negligent in preventing offenses may be fined triple differential billing.
Partnerships and corporations held liable through responsible officers.
Theft of transmission materials punished by reclusion temporal or heavy fines.

Utilities must submit watt-hour meter standards for testing annually.
Customer meters must be calibrated every two years with reports submitted to ERB.
Detailed formula and methodologies for calculating differential billing and unbilled consumption.
Period of billing recovery generally up to 60 months or shorter if proven.
Requires inspection reports with signatures and ERB attestation.
Surcharges may be imposed on offending consumers escalating with repeated offenses.

Courts may not issue injunctions against service disconnection unless bad faith or grave abuse of authority is shown.
Bonds required for injunctions covering differential billing and penalties.
Courts must report injunctions to the Supreme Court within 10 days.

Caps on recoverable system loss established for private utilities with scheduled reductions from 14.5% in 1996 to 9.5% in 1999.
Cooperatives have higher caps with scheduled reductions from 22% in 1996 to 14% in 2000.
Utilities and cooperatives must file amended automatic cost adjustment formulas reflecting system loss caps.
Utilities and cooperatives to apply for further cap adjustments after four and five years respectively.
ERB retains authority to reduce technical or design losses.

Utilities/cooperatives to file sworn reports of pilferage recoveries including amounts recovered, consumer details, and expenses.
Payments not accepted during pendency of case unless allowed by court or compromise.
Recovery amounts reflected as reductions in customer bills, confirmed by ERB Order.

Utilities, cooperatives, NPC, and NEA must conduct educational campaigns for consumers on the provisions.
Campaign required within 60 days of rules’ effectivity and at least annually thereafter.
Condensed provisions must be included in contracts with new consumers.

Rules take effect 15 days after publication in two newspapers of general circulation.