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Republic Act No. 7832

Report by: D.M. Etang

Short Title:

Section 1

“Anti-electricity and Electric

Transmission Lines/ Materials Pilferage Act of 1994”

Illegal Use of Electricity

Section 2

a.

- Tap or made any connection with overhead lines, service drops or other electric service wires without previous consent.

b.

- Tap make or cause to be made any connection to existing electrical facilities of any duly registered consumer without consent.

c.

- Tamper or use of a tampered meter, or any device that interferes with the accurate metering

d.

- Damage or destroy an electric meter, equipment, wire or conduit that may lead to inaccurate metering.

- Knowingly benefit from any of the above mentioned

e.

Section 3

Theft of Electric Power Transmission Lines and Materials.

a.

It is Unlawful to:

- Ship any electrical power transmission line/material without

permit/clearance from owner or NPC.

- Store, possess or keep control of any electric power transmission line or material

- Remove any electric power transmission line/material or meter from installation place.

- Transfer power transmission lines or material with any means of conveyance

(1)

(3)

(2)

(4)

b.

Items with a Minimum Voltage of 69kv:

Steel transmission line towers made of galvanized steel angular members

Overhead ground wires made of 7 strands of galvanized steel wires

Insulators made of porcelain or glass shell

Aluminum conductor steel reinforced

Transmission line hardwares and materials made of aluminum alloy or malleable steel

(1)

(5)

(2)

(3)

(4)

Section 4

Prima Facie

Evidence.

Prima Facie Evidence shall be the basis for:

(a)

Prima Facie Evidence

The following constitutes to the Prima Facie Evidence:

(i) bored hole at any part of the electric meter

(ii) elements that could result in the inaccurate registration of consumption of electricity

(iii) wiring connection which affects the normal operation of the electric meter

(iv) tampered or broken seal in the meter, or mutilated, or altered meter recording chart

(v) a current reversing transformer, jumper, shorting and/or shunting

wire, and/or loop connection

(vi) alteration, bypassing or tampering of instruments, transformers, and accessories

(vii) destruction of any integral accessory of the metering device box

(viii) The acceptance of money by any officer or employee of the electric utility concerned or employee for not reporting the presence of any of the circumstances enumerated in subparagraphs (i), (ii), (iii), (iv), (v), (vi), or (vii)

- Immediate disconnection by the electric utility

(1)

- The holding of preliminary investigation by the prosecutor

(2)

(3)

- The lifting of any temporary restraining order or injunction issued against a private electric utility or rural electric cooperative.

(b)

- The possession of electric power transmission line/ material by any person who's not engaged in the distribution of electric power, shall be prima facie evidence that such line/martial is the fruit of the offense defined in Section 3 hereof such line/material may be confiscated from the person in possession.

Section 5

Incentives.

- Five thousand Pesos (P5,000) shall be given to any person who shall report to the NPC or police authorities any act which may constitute a violation of Section 3.

Disconnection of Electric Service.

Section 6

Second Offense

- a written notice or warning have been issued upon the first discovery

- electric service will not be immediately disconnected nor restored upon the deposit of the amount representing the differential billing

However,

- in the event that the court discovers that the violation has not been committed by the same person, the amount deposited shall be credited in future billings with interest and the utility or cooperative shall pay such individual twofold the value of the payment with legal interest

- if the court finds the same person guilty of

such illegal use of electricity, he shall pay the electric utility or the rural electric cooperative concerned double the value of the estimated electricity illegally used.

Differential Billing

- “differential billing” refer to the amount to be charged to the person concerned for the unbilled electricity illegally consumed by him that is determined through the use of methodologies

Basis for Differential Billing

(a) the highest recorded monthly consumption within the

five-year billing period ,

(b) the estimated monthly consumption as per

the report of load inspection conducted,

(c) the higher consumption between the average consumption before or after the highest drastic drop in consumption within the five year billing period,

(d) the highest recorded monthly consumption within four (4)

months after the time of discovery, or

(e) the result of the ERB test during the time of discovery

Penalties.

Section 7

(a)

Violation of Section 2

- prision mayor

- a fine of P10,000 - P20,000 or both

(b)

Violation of Section 3

- reclusion temporal

- a fine ranging from P50,000 - P100,000 or both

(c)

Offense is committed by, or in connivance with an officer or employee

- will be punished with a penalty one degree higher than the penalty provided

- will be dismissed and perpetually disqualified from employment in any public or private utility

Authority to Impose Violation of Contract Surcharges.

Section 8

(a)

First Apprehension

- Twenty-five percent (25%) of the current bill as surcharge

(b)

Second Apprehension

- Fifty percent (50%) of the current bill as surcharge

(c)

Third and Subsequent Apprehension

- One hundred percent (100%) of the current bill as surcharge

Section 9

Restriction on the Issuance of Restraining Orders or Writs of Injunction.

- the rural electric cooperative will be issued an injunction if there is a prima facie evidence that the disconnection was made with evident bad faith or grave abuse of authority

Rationalization of System Losses by Phasing out Pilferage Losses as a Component Thereof.

Section 10

(a)

For Private Utilities

(i) Fourteen and a half percent (14 1/2%) at the end of the first year following the effectivity of this Act;

(ii) Thirteen and one-fourth percent (13 1/4%) at the end of the second year following the effectivity of this Act;

(iii) Eleven and three-fourth percent (11 3/4%) at the end of the third year following the effectivity of this Act; and

(iv) Nine and a half percent (9 1/2%) at the end of the fourth year following the effectivity of this Act.

(b)

For Rural Electric Cooperatives

(i) Twenty-two percent (22%) at the end of the first year following the effectivity of this Act;

(ii) Twenty percent (20%) at the end of the second year following the effectivity of this Act;

(iii) Eighteen percent (18%) at the end of the third year following the effectivity of this Act;

(iv) Sixteen percent (16%) at the end of the fourth year following the effectivity of this Act; and

(v) Fourteen percent (14%) at the end of the fifth year following the effectivity of this Act.

Section 11

Area of Coverage

- Section 10 will apply only to the area of coverage of private electric utilities and the rural electric cooperatives.

- Permissible levels of recovery for system losses in areas of coverage that may be added shall be determined by the ERB.

Section 12

Recovery of Pilferage Losses

- The amount recovered

- The name of the consumer

concerned

- The fact of recovery

- The date thereof

(a)

(c)

(d)

(b)

- The amount of pilferage loss claimed

- The explanation for the failure to recover the whole amount claimed

- other particulars as may be required by ERB

(e)

(f)

(g)

Section 13

Information Dissemination

- in cooperation with each other, the private electric utilities, the rural electric cooperatives, the NPC, and the National Electrification Administration (NEA) shall undertake a vigorous campaign to inform their consumers of the provisions of this Act within sixty (60) days from the effectivity of this Act.

Section 14

Rules and Regulation

- The ERB shall issue the rules and regulations as may be necessary to ensure the efficient and effective implementation of the provisions of this Act

Section 15

Separability Clause.

- Any portion or provision of this Act which may be declared unconstitutional or invalid shall not have the effect of nullifying other portions or provisions

Section 16

Repealing Clause.

- The provisions in Presidential Decree No. 401, as amended by Batas Pambansa Blg. 876, are hereby expressly

repealed.

Section 17

Effectivity Clause.

- This Act shall take effect thirty days after its publication in the Official Gazette or in any two (2) national newspapers of general circulation.

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