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FOURTEENTH CONGRESS OF THE REPUBLIC 
First Regular Session 
) 
8 MAY 15 P.3 f? 3 
OF THE PHILIPPINES 
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Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
The Philippines' total electric energy consumption in 1994 was estimated at 
30.459 Billion kilowatt hours. In 2005, this figure has increased to 56.508 Billion, an 
increase of 54% since 1994. However, power losses in 1994 were recorded at 15.5% 
and for 2001, 12.5% of the total electric energy consumed, a decrease of only 3% 
despite a 54% increase in energy consumption. These facts are contributing factors to 
the Philippines having one of the highest power rates in Asia, which has a direct effect 
on this country's competitiveness. 
Pilferage of electricity is condemnable as thievery, but it is doubly 
reprehensible because of the soaring power rates that continue to haunt us today and 
ordinary and honest customers are made to shoulder the burden of losses. It equates 
to millions of pesos of benefits to economic saboteurs, to higher cost of electric bills on 
the part of paying subscribers, and to a bigger investment for new power generating 
plants. 
Before the passage of Republic Act 7832, otherwise known as "the Anti- 
Electricity and Electric Power Transmission Lines and Materials Pilferage Act of 
1994", system loss due to pilferage was estimated at roughly P6.6 billion. However, 
even with the passage of the aforementioned law, systems losses due to electric 
pilferage still averages at an alarming rate of 14-20%. 
Systems loss accounts for at least 8% of the bill of an average consumers or 
about 58 centavos per kWH. Consumers paid P84.6 billion for Meralco systems loss 
from 2003-2007, based on 70.55 centavos per kWH systems loss charge. 
Systems losses include the technical and non-technical losses incurred by 
electric companies. As electricity flows through electric wires, part of it disappears in 
the form of heat called technical losses; some of it are consumed by illegal users called 
non-technical losses. Technical losses are part of the overhead in the distribution of 
electricity while non-technical losses indicate pilferage. 
Under RA 7832, electric utilities was originally allowed 15% of the systems 
losses to be included in the calculation of their rate base. Over the years there was a 
progressive lowering of systems losses. Presently, the rate is 9.5%. 
With the view of making the production and distribution of electric energy 
more efficient, this bill seeks to amend certain provisions in Republic Act 7832. The 
proposed amendment expands the coverage of the law to include not only illegal use 


of electricity and theft of electric power transmission line/ materials but also theft of 
distribution line/ materials. 
This amendatory bill seeks to protect consumers by preventing retailers of 
electricity from passing of .the cost of pilferage and the cost .of the inefficiencies of 
electric utilities to consumers. This will avoid the highly absurd scenario where 
innocent consumers will have to pay for the criminal activities of some consumers. 
The losses should be shouldered by the retailer of the electric power because 
that is part of business risk and the one responsible for the pilferage. This will prevent 
electric companies from being complacent and not any more interested to reduce the 
incidence of pilferage. By not charging systems losses to innocent consumers, we are 
in effect, forcing the retailer of electricity to be more efficient, more vigilant, and more 
concerned in seeing to it that they can reduce and eliminate pilferage: 
But to cushion the impact on refailers of electricity who will now be unable to 
pass on systems losses to consumers, the bill is increasing the fine for pilferage from 
Fifty thousand pesos to a range of One hundred fifty thousand to five hundred 
thousand pesos to deter the commission thereof and to prevent utility companies from 
preying on honest consumers. 
In view of the foregoing, approval of this measure is earnestly sought. 
LOREN LEGARDA 
Senator 
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FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
First Regular Session 
S E N A T E  
.' , 
Introduced by Senator Loren Legarda 
AN ACT 
AMENDING CERTAIN SECTIONS OF REPUBLIC ACT NUMBERED SEVENTY- 
EIGHT THIRTY-TWO, AS AMENDED, OTHERWISE KNOWN AS THE "ANTI- 
ELECTRICITY 
AND 
ELECTRIC 
TRANSMISSION LINES/ 
MATERIALS 
PILFERAGE ACT OF 1 9 9 4  
Be it enacted by the Senate and the House ofRepresentatives of the Republic of the Philippines 
in Congress assembled: 
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SECTION 1. Section 2 (c) of Republic Act No. 7832, as amended, is hereby 
further amended to read as follows: 
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"SECTION 2. Illegal Use of Electricity. - x x x 
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(b) Tap, make or cause to be made any connection to the existing electric 
service facilities of any duly registered consumer without 'the latter's [or] 
AND the electric utility's consent or authority; 
(c) Tamper, install or use a tampered electrical meter, jumper, current 
reversing transformer, shorting or shunting wire, loop connection or any 
other device OR METHOD, SUCH AS TILTING OF METER, which 
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interferes with the proper or accurate registry or metering of electric 
current or otherwise results in its diversion in a manner whereby 
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electricity is stolen or wasted;" 
SEC. 2. Section 3 of the same Act is hereby amended to read as follows: 
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"SECTION 3. Theft of Electric Power Transmission AND DISTRIBUTION 
Lines and Materials. - (a) It is hereby declared unlawful for any person 
to: 
(1) 
Cut, saw, slice, separate, split, severe, smelt, or remove any electric 
power transmission AND DISTRIBUTION line/material or meter from a 
. .  . 
tower, pole, or any other installation or place of installation or any other 
place or site where it may be rightfully or lawfully stored, deposited, 
kept, stocked, inventoried, situated or located, without the consent of the 
owner, whether or not the act is done for profit or gain; 
(2) 
Take, carry away or remove or transfer, with or without the use of 
a motor vehicle or other means of conveyance, any electric power 
transmission AND DISTRIBUTION line/material or meter from a tower, 
pole, any other installation or place of installation, or any place or site 
where it may be rightfully or lawfully stored, deposited, kept, stocked, 
inventoried, situated or located without the consent of the owner, 
whether or not the act is done for profit or gain; 
(3) 
Store, possess or otherwise keep in his premises, custody or 
control, any electric power transmission . AND DISTRIBUTION 
line/material or meter without the consent of the owner, whether or not 
the act is done for profit or gain; and 
(4) 
Load, carry, ship or move from one place to another, whether by 
land, air or sea, any electrical power transmission AND DISTRIBUTION 
line/material, whether or not the act is done for profit or gain, without 
first securing a clearance/permit for the said purpose from its owner or 
the [National Power Corporation (NPC)] NATIONAL TRANSMISSION 
CORPORATION (TRANSCO) [or], its regional office concerned, OR THE 
DISTRIBUTION UTILITY, as the case may be. 
.
.
 
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(b) 
For purposes of this section, “electrical power transmission AND 
DISTRIBUTION line/material” refers to electric power transmission 
AND DISTRIBUTION steel towers, woodpoles, cables, wires, insulators, 
line hardwares, electrical conductors and other related items [with a 
minimum voltage of sixty-nine kilovolts (69 kv)], such as the following: 
(1) 
Steel transmission AND DISTRIBUTION line towers made of 
galvanized steel angular members and plates or creosoted and/or 
lannelized woodpoles/ concrete poles’and designed to carry and support 
the conductors; 
(2) 
[Aluminum conductor steel reinforced (ACSR) in excess of one 
hundred (100) MCM;] ALL TYPES OF WIRES AND CABLES USED TO 
TRANSMIT AND DISTRIBUTE ELECTRICITY; 
(3) 
ALL [Oloverhead ground wires made [of 7 strands] of galvanized 
steel wires, [3.08 millimeters in diameter and] designed to protect the 
electrical conductors from lightning strikes; 
(4) 
Insulators made of porcelain, [or] glass shell and ANY OTHER 
MATERIAL designed to insulate the electrical conductors from steel 
towers or [wood]poles; and 
(5) 
Various transmission AND DISTRIBUTION line hardwares and 
materials made of aluminum alloy or malleable steel and designed to 
interconnect the towers, conductors, ground wires, and insulators 
mentioned in subparagraphs (l), (2), (3), and (4) above for the safe and 
reliable operation of the transmission AND DISTRIBUTION lines.” 
SEC. 3. Section 4(b) of the same Act is hereby amended to read as 
follows: 
“SEC. 4. 
PrimaFacieEvidence. x x 
x 
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(a) The presence of any of the following circumstances shall constitute 
prima facie evidence of illegal use of electricity, as defined in this Act, 
by the person benefitted thereby, and shall be the basis for: (1) the 
[immediate] OUTRIGHT disconnection by the electric utility OF THE 
ELECTRIC 
SERVICE 
to 
such 
person 
[after 
due 
notice] 
IMMEDIATELY UPON DISCOVERY THEREOF TO PREVENT 
FURTHER PILFERAGE OR LOSS; 
(b) The possession or custody of electric power transmission AND 
DISTRIBUTION line/material by any person, natural or juridical, not 
engaged in the transformation, transmission or distribution of electric 
power, or in the manufacture of such electric power transmission 
AND DISTRIBUTION line/material shall be prima facie evidence that 
such line/material is the fruit of the offense defined in Section 3 
hereof and therefore such line/material may be confiscated from the 
person in possession, control or custody thereof.” 
SEC. 4. Section 5 of the same Act is hereby amended to read as follows: 
“SEC. 5. 
Incentives. - An incentive scheme by way of a monetary 
reward in the [ minimum ] amount of [ Five thousand pesos (P5,OOO) ] 
NOT LESS THAN FIVE THOUSAND PESOS (5,000.00) BUT NOT MORE 
THAN FIFTY THOUSAND PESOS (50,000.00) shall be given to any 
person who shall report to the [ NPC ] TRANSCO, PRIVATE ELECTRIC 
UTILITY, RURAL ELECTRIC COOPERATIVE or police authorities any 
act which may constitute a violation of Section 3 hereof. The Department 
of Energy (DOE), in consultation with the [ NPC J TRANSCO, 
DISTRIBUTION UTILITIES, ELECTRIC COOPERATIVES AND END- 
USERS 
shall issue the necessary guidelines for 
the proper 
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effectivity of this Act.” 
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SEC.5. A new section is hereby introduced after Section 5 to read as 
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follows: 
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”SEC. 
6. 
INSPECTION 
OF 
ELECTRIC ,SERVICE. - AFTER 
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PRESENTMENT OF 
VALID IDENTIFICATION CARDS AND 
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INSPECTION 
REPORT 
FORMS, 
THE 
DULY 
AUTHORIZED 
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PERSONNEL OF PRIVATE ELECTRIC UTILITY OR RURAL ELECTRIC 
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COOPERATIVES SHALL BE ALLOWED ENTRY TO THE PREMISES OF 
implementation of this incentive scheme within thirty (30) days from the 
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ANY DWELLING OR BUILDING INCLUDING COMMERCIAL AND 
GOVERNMENT ESTABLISHMENTS TO CONDUCT INSPECTION OF 
ELECTRIC SERVICE CONNECTIONS WITH THE PERMISSION OF 
THE OWNER CONCERNED OR IN HIS ABSENCE TO BE WITNESSED 
BY A PERSON IN AUTHORITY AND OF LEGAL AGE IN SAID PLACE 
OR ESTABLISHMENT TO DETERMINE IF THE OWNER OR USER OF 
SAID SERVICE CONNECTION IS LIABLE FOR VIOLATION OF THIS 
ACT. THE INSPECTION SHALL BE CONDUCTED AT RANDOM BY 
DULY AUTHORIZED REPRESENTATIVES OF PRIVATE ELECTRIC 
UTILITY OR RURAL ELECTRIC COOPERATIVES AT REASONABLE 
HOURS.” 
SEC. 6. Section 6 of the same Act ishereby amended to read as follows: 
”SEC. 6. 
Disconnection of Electric Service. - The private 
electric utility or rural electric. cooperative concerned shall have the right 
and authority to disconnect [immediately] OUTRIGHTLY the electric 
service [ after serving a written notice or warning to that effect,] without 
the need of a court or administrative order, and deny restoration of the 
same, [ when the owner of the house or establishment concerned ] 
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WHEN THE CUSTOMER or someone acting in his behalf shall have been 
caught en flagrante delicto [ doing ] COMMITTING any of the acts 
enumerated in Section 4(a) hereof, or when [ any of the circumstances so 
enumerated shall have been discovered for the second time: Provided, 
That in the second case, a written notice or warning shall have been 
issued upon the first discovery] ANY PILFERING DEVICE OR SCHEME 
IS 
FOUND 
OR 
ATTACHED TO THE 
ELECTRIC 
SERVICE 
CONNECTION OR IS BEING USED BY THE CONSUMER AT THE 
TIME WHEN THE ACTUAL INSPECTION WAS BEING CONDUCTED: 
Provided, [ further] HOWEVER, That the electric service shall [ not ] be 
immediately disconnected [ or 3 AND 
shall NOT be immediately 
restored [ upon ] UNLESS the CUSTOMER deposit [ of ] the amount 
representing the differential billing [ by the person denied the service 1, 
with the private electric utility or rural electric cooperative concerned or 
with the competent court, as the case may be: Provided, further[more], 
That if the court finds that illegal use of electricity has not been 
committed by the same person, the amount deposited shall be credited 
against future billings, with legal interest thereon chargeable against the 
private utility or rural electric cooperative, and the utility or cooperative 
shall be made to immediately pay such person double the value of the 
payment or deposit with legal interest, which amount shall likewise be 
creditable against immediate future billings, without prejudice to any 
criminal, civil or administrative action that such person may be entitled 
to file under existing laws, rules and regulations: Provided, 
[finallyIFURTHERMORE, That if the court finds the same person guilty 
of such illegal use of electricity, he shall, upon final judgment, be made to 
pay the electric utility or rural electric cooperative concerned double the 
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value of the estimated electricity illegally used which is referred to in this 
section as differential billing. 
For purposes of this Act, "differential billing" shall refer to the 
amount to be charged to the person concerned for the unbilled electricity 
illegally consumed by him as determined through the use of 
methodologies which utilize, among others, as basis for determining the 
amount of monthly electric consumption in kilowatt-hours to be billed, 
either: (a) the highest recorded monthly consumption within the five-year 
billing period preceding the time of the discovery, (b) the estimated 
monthly consumption as per the report of load inspection conducted 
during the time of discovery, (c) the higher consumption between the 
average consumptions before or after the highest drastic drop in 
consumption within the five-year billing period preceding the discovery, 
(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 and, as basis for determining the period to be recovered 
by the differential billing either: (1) the time when the electric service of 
the person concerned recorded an abrupt or abnormal drop in 
consumption, or (2) when there was a change in his service connection 
[such as a] OR change of meter, [ change of seal or reconnection,] or in 
the absence thereof, a maximum of sixty (60) billing months up to the 
time of discovery: Provided, however, That such period shall, FOR 
DETERRENCE PURPOSES, in no case, be less than one (1) year 
preceding the date of discovery of the illegal use of electricity 
REGARDLESS OF ANY PRIOR CHANGE OR SEAL, METER OR 
SERVICE CONNECTION OR RECONNECTION OR . INSPECTION 
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OCCURRING WITHIN ONE (1) YEAR BEFORE THE DATE OF 
DISCOVERY OR APPREHENSION.” 
SEC. 7. Section 7 (b) 
of the same Act is hereby amended to read as 
follows: 
“SEC. 7. 
Penalties. x x 
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(b) 
Vic-tion of Section 3. - The penalty of rec-xion temporal or a 
fine ranging from [ Fifty thousand pesos (P50,OOO) to One hundred 
thousand pesos (p100,OOO) ] ONE HUNDRED FIFTY THOUSAND 
PESOS (Pl50,OOO.OO) TO FIVE HUNDRED THOUSAND PESOS 
(P500,OOO) or both at the discretion of the court, shall be imposed on any 
person found guilty of violating Section 3 hereof.” 
SEC. 8. Sections 10 and 11 of the same Act are hereby repealed. 
SEC. 9. The DOE and the TRANSCO shall formulate the rules and 
regulations for the effective implementation of this Act. 
SEC. 10. All laws, decrees, executive orders, rules and regulations, or 
parts hereof inconsistent with the provision of this Act are hereby repealed, 
amended or modified accordingly. 
SEC. 11. This Act shall take effect fifteen (15) days after its publication in 
the Official Gazette or in at least two (2) newspapers of general circulation 
whichever comes earlier. 
Approved, 
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