REPUBLIC ACT NO. 7832

(December 8, 1994)

RA 7832 imposes penalties for electricity theft, promotes compliance, and encourages reporting and education.

Purpose and Scope of the Law

The law aims to address and penalize the pilferage of electricity and the theft of electric power transmission lines and materials in the Philippines. It seeks to rationalize system losses by phasing out pilferage losses as a component of these losses, thereby promoting fair practices in the use of electricity and protecting the interests of electric utilities and consumers. The law applies to all individuals and entities, both public and private, involved in the illegal use of electricity or the theft of electric power transmission materials.

Key Definitions and Terms

  • Illegal Use of Electricity: Refers to unauthorized connections to electric service lines, tampering with electric meters, and any actions that result in the diversion or wastage of electricity.
  • Electric Power Transmission Lines/Materials: Includes steel towers, wood poles, cables, wires, insulators, and other related items with a minimum voltage of sixty-nine kilovolts (69 kV).
  • Differential Billing: The amount charged to a person for unbilled electricity illegally consumed, calculated based on various methodologies.
  • Prima Facie Evidence: Circumstances that provide sufficient evidence of illegal activity, allowing for immediate disconnection of service and legal action.

Main Provisions and Their Explanations

Section 2: Illegal Use of Electricity

This section outlines specific unlawful acts, including unauthorized connections to electric lines, tampering with meters, and using electricity obtained through illegal means.

Section 3: Theft of Electric Power Transmission Lines and Materials

It prohibits the unauthorized removal, possession, or transfer of electric power transmission materials, emphasizing that consent from the owner is required for any such actions.

Section 4: Prima Facie Evidence

Lists circumstances that constitute prima facie evidence of illegal electricity use, allowing for immediate disconnection of service and legal proceedings.

Section 5: Incentives

Establishes a monetary reward for individuals who report violations of the law, encouraging public participation in combating electricity theft.

Section 6: Disconnection of Electric Service

Allows electric utilities to disconnect service without a court order if illegal use is detected, provided proper notice is given.

Section 7: Penalties

Details the penalties for violations, including imprisonment and fines, with increased penalties for employees of electric utilities involved in illegal activities.

Section 8: Authority to Impose Violation of Contract Surcharges

Utilities may impose surcharges on consumers caught tampering with meters, with increasing penalties for repeated offenses.

Section 9: Restriction on the Issuance of Restraining Orders

Limits the ability of courts to issue injunctions against utilities disconnecting service unless there is clear evidence of bad faith.

Section 10: Rationalization of System Losses

Establishes caps on recoverable system losses for electric utilities, gradually reducing the allowable percentage over several years.

Section 11: Area of Coverage

Specifies that the caps on system losses apply only to the areas covered by utilities at the time the law took effect.

Section 12: Recovery of Pilferage Losses

Mandates reporting requirements for utilities recovering pilferage losses, ensuring transparency and accountability.

Section 13: Information Dissemination

Requires utilities to inform consumers about the law's provisions, promoting awareness and compliance.

Section 14: Rules and Regulations

Empowers the Energy Regulatory Board (ERB) to issue necessary rules for the law's implementation.

Section 15: Separability Clause

Ensures that if any part of the law is declared unconstitutional, the remaining provisions remain effective.

Section 16: Repealing Clause

Repeals previous laws that conflict with this Act, streamlining legal enforcement against electricity theft.

Section 17: Effectivity Clause

The law takes effect 30 days after publication in the Official Gazette or national newspapers.

Significant Legal Principles or Doctrines Established

The law establishes a clear framework for addressing electricity theft, emphasizing the importance of consent in the use of electric power and the responsibilities of both consumers and utilities. It also introduces the concept of prima facie evidence in the context of illegal electricity use, which facilitates quicker legal action against offenders.

Potential Implications or Impacts of the Law

The law is expected to deter electricity theft and pilferage, leading to reduced losses for electric utilities and potentially lower costs for consumers. It encourages public vigilance and participation in reporting illegal activities, fostering a culture of accountability. The phased reduction of system loss caps may also incentivize utilities to improve their operational efficiencies. However, the law's strict penalties and enforcement mechanisms may lead to increased scrutiny of consumer practices and could result in disputes over billing and service disconnections.