Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. _______ 
___________________________________________________________________________ 
     INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO 
________________________________________________________________________ 
EXPLANATORY NOTE 
This is a refiled bill which originated from the late Representative Pedro P. Romualdo 
originally filed a version of this bill in the 14th and 15th Congresses. In the 14th 
Congress, the Committee on Energy deliberated upon th.is bill exhaustively. A 
technical working group, with the participation of electric power industry stakeholders, 
ironed out the issues and concerns of the electric power industry and the consuming 
public regarding the pilferage of electricity and electric power lines, equipment, and 
materials.  
Unfortunately, the 14th Congress was unable to pass the measure. This was re-filed in 
the 15th Congress but was unfortunately not passed. It was likewise filed in the 16th, 
17th and 18th Congresses by Representative Xavier Jesus D. Romualdo, and again was 
not passed. 
Portions of the Explanatory Note of the late Representative Romualdo is herein 
reproduced and updated to reflect new policies: 
Republic Act (RA) No. 7832 was passed into law in 1994 during the 9th 
Congress with the legislative intent to curb the illegal use of electricity and 
theft of electric power transmission lines and materials as well as provide 
penalties to discourage perpetrators from committing these offenses. 
Nearly three decades from the implementation of this law, the problem on 
illegal use of electricity and theft of electric power transmission lines and 
materials has not dissipated and has remained unabated. (Emphasis and 
updating supplied) 
Industry players have estimated their losses to reach billions of pesos prior 
to the passage of RA No. 7832. Therefore, it is only appropriate that we 
review this law to respond to the needs of the time. This has become 
a huge concern f government, the industry players and the general 
consumers due to its impact on the total cost of electricity on their monthly 
basic needs budget.  
This proposed measure would bring better benefits to the Filipino consumers 
and also protect the property of industry players such as generation companies, 
transmission companies, and distribution utilities, including electric 
cooperatives and private utilities, from pilferage and destruction. 
The new provisions would provide the judicial and executive departments a 
better description of the true intent of the legislature. This will avoid what we 
July 18, 2022
12:22 pm
2100


call executive or judicial legislation in the interpretation of the law. 
 
Through the years, the Department of Energy has already come up with updated 
policies to assist consumers with the issuance and implementation of the Magna 
Carta for Residential Electricity Consumers and the issue on the maximum cap 
for the recoverable system loss. The electric providers also provided certain 
incentives to reward its consumers and distribution utilities with system 
losses way below the prevailing approved cap. A separate mechanism was 
also provided on how to treat system loss reduction. (Updates supplied) 
 
Still, even when certain safeguards are in place the violations are very rampant 
nationwide and people tend to ignore the existence of a law that will go after 
them. Many nefarious individuals are unmindful of their illegal acts which 
directly affects the reliability of the power supply. The abrupt power 
interruptions and long power outages due to pilferage activities are perceived 
to amount to millions of losses and consumers are pressed to spend more for 
alternative sources of power to sustain their businesses and important activities 
especially hospital institutions and manufacturing firms thus aggravating their 
budgets. (Updates supplied) 
 
 
The Filipino consumers will truly benefit and reap the fruits of this updated legislation. 
Let us continue to push for the passage of legislative measures that will alleviate the 
plight of our consumers. 
 
In view of the foregoing, the support of the Members of Congress for the passage of this 
measure is earnestly requested. 
 
 
 
                                                                         
                 JURDIN JESUS M. ROMUALDO


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
HOUSE BILL NO. ______ 
INTRODUCED BY REPRESENTATIVE JURDIN JESUS M. ROMUALDO 
AN ACT 
PENALIZING THE ILLEGAL USE OF ELECTRICITY, THE THEFT AND 
DESTRUCTION OF ELECTRIC POWER LINES, EQUIPMENT, AND MATERIALS, 
RATIONALIZING SYSTEM LOSS, REPEALING REPUBLIC ACT NO. 7832, 
OTHERWISE KNOWN AS THE ANTI-ELECTRICITY AND ELECTRIC 
TRANSMISSION LINES/MATERIALS PILFERAGE ACT OF 1994, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled: 
SECTION 1. Short Title. - This Act shall be known and as the “Anti-Electricity, Electric Power 
1 
Lines, Equipment, and Materials Pilferage Act”. 
2 
SEC. 2. Definitions. - As used in this Act, the following terms are hereby defined as follows: 
3 
a. Electric power line, equipment, or material - refer to facilities, assets, and infrastructure
4 
used in electric power generation, transmission, and distribution such as, but not limited
5 
to:
6 
(1) Generation, transmission, and distribution equipment and line structures and poles of
7 
any make or design;
8 
(2) All types of wires and cables used to generate, transmit, and distribute electricity,
9 
including those used for grounding, control, measurement, and communication
10 
purposes;
11 
(3) All overhead ground and neutral wires designed to protect electrical conductors from
12 
lightning strikes and provide voltage stability;
13 
14 
(4) Insulators of any other material used to attach the electrical conductors from
15 
steel towers or poles; and
16 
17 
2100


(5) Generation, transmission, and distribution line hardware and materials of any make 
1 
or kind used for the delive1y of electricity. 
2 
 
3 
b. Differential billing - refers to the amount to be charged to the person concerned for the 
4 
unbilled electricity illegally consumed by him or her as determined through the use of 
5 
methodologies which utilize, among others, as basis for determining the amount of monthly 
6 
electric consumption in kilowatt-hours to be billed, either: the highest recorded monthly 
7 
consumption within the thirty (30) month billing period preceding the time of the discovery, 
8 
the higher consumption between the average consumptions before or after the highest drastic 
9 
drop in consumption within the thirty (30) month billing period preceding the discovery, the 
10 
estimated monthly consumption as per the report of load inspec6on conducted during 
11 
the time of discovery, and the result of the Energy Regulatory Commission (ERC) test during 
12 
the time of discovery and, as basis for determining the period to be recovered by the 
13 
differential billing, either: the time when the electric service of the person concerned 
14 
recorded an abrupt or abnormal drop in consumption, or when there was a change in his 
15 
service connection or a change in meter, or in the absence thereof, a maximum of twenty-
16 
four (24) billing months, up to the time of discove1y; Provided, however, that such period 
17 
shall, in no case, be less than one (l) year preceding the date of discovery of the illegal use 
18 
of electricity regardless of any prior change of seal, meter, or service connection, or 
19 
reconnection or inspection occurring within one (1) year before the date of discovery or 
20 
apprehension. 
21 
 
22 
SEC. 3. Illegal Use of Electricity. -It shall be unlawful for any person to: 
23 
a. Tap, make, or cause to be made any connection with overhead lines, service drops, or 
24 
other electric service wires, without previous authority or consent of the private electric 
25 
utility (PEU) or rural electric cooperative (REC) concerned. 
26 
b. Tap, make, or cause to be made any connection to the existing electric service facilities 
27 
of any duly registered consumer without the consent or authority of both the concerned 
28 
PEU and REC and such duly registered consumer. 
29 
c. Tamper, install, or use a tampered electrical meter, instrument transformer and associated 
30 
equipment, jumper, current reversing transformer, shorting or shunting wire, loop 
31 
connection, or any other device or any other method, which interferes with the proper or 
32 
accurate regist1y or metering of electric current or otherwise results in its diversion in a 
33 
manner whereby electricity is stolen or wasted. 
34 
d. Damage or destroy an electric meter, equipment, wire, or conduit or allow any of them to 
35 
be so damaged or destroyed as to interfere with the proper or accurate metering of 
36 
electric current. 
37 
 
38 
 
39 


 e. Knowingly use or receive the direct benefit of electric service obtained through any of   
1 
the abovementioned acts. 
2 
 
3 
SEC. 4. Theft or Destruction of Electric Power Line, Equipment, or Material. - It shall be unlawful for 
4 
any person to: 
5 
a. Cut, saw, slice, separate, split, severe, smelt, or remove any electric power line, 
6 
equipment, or material from a tower, pole, any other installation or place of installation, 
7 
or any other place or site where it may be rightfully or lawfully stored, deposited, kept, 
8 
stocked, inventoried, situated, or located, without the consent of the owner. 
9 
b. Take, carry away, remove, or transfer any electric power line, equipment, or material 
10 
from a tower, pole, any other installation or place of installation, or any place or site where 
11 
it may be rightfully or lawfully stored, deposited, kept, stocked, inventoried, situated or 
12 
located, without the consent of the owner. 
13 
c. Store, possess, or otherwise keep in one's premises, custody, or control any electric 
14 
power line, equipment, or material without the consent of the owner thereof. 
15 
d. Load, carry, ship, or move from one place to another, whether by land, air or sea, any electric 
16 
power line, equipment, or material without fast seeming a clearance or permit for the said 
17 
purpose from its owner. 
18 
e. Destroy, damage, or attempt to destroy or damage, by bombs, explosives, or any other 
19 
means or device, any electric power line, equipment, or material. 
20 
 
21 
SEC. 5. Prima Facie Evidence. - (a) The presence of any of the following circumstances shall 
22 
constitute prima facie evidence of the commission of illegal use of electricity and shall be the 
23 
basis for the outright discom1ection of electric service immediately upon the discovery thereof 
24 
to prevent further pilferage or loss of electricity and for safety purposes, the institution of 
25 
criminal action, and the lifting of any temporary restraining order or i11junction which may have 
26 
been issued against the PEU or REC concerned: 
27 
1. The presence of a bored hole on the glass cover of the electric meter, or at the back 
28 
or any other part of said meter. 
29 
2. The presence inside the electric meter of salt, sugar, and other material that could result 
30 
in the inaccurate registration of the meter's internal parts to prevent its accurate 
31 
registration of consumption of electricity. 
32 
3. The existence of any wiring connection that affects the normal operation or registration 
33 
of the electric meter. 
34 


 4. The presence of a tampered, broken, or fake seal on the meter, or mutilated, altered,    
1 
or tampered meter recording chart or graph, or computerized chart, graph, or log. 
2 
5. The presence in any part of the building or its premises which is subject to the  
3 
control of the consumer or on the electric meter, of a current reversing transformer, 
4 
jumper, shorting and/or shunting wire, and/or loop connection or any other similar 
5 
device. 
6 
6. The mutilation, alteration, reconnection, disconnection, bypassing, or tampering of 
7 
instruments, transformers, and accessories. 
8 
7. The destruction of, or attempt to destroy, any integral accessory of the metering device 
9 
box that encases an electric meter, or its metering accessories. 
10 
8. The presence of a hole in a conduit that contains the wires leading to the electric meter. 
11 
9. The presence of error or alarm codes in an electronic or digital electric meter indicating 
12 
an unauthorized manipulation. 
13 
10. The presence of a discrepancy in the readings of a consumer's meter with a check 
14 
meter installed by the electric utility; Provided, that the installation of such check meter 
15 
is witnessed by a duly authorized representative of the ERC, a person in authority, or 
16 
an agent of a person in authority. 
17 
11. The acceptance of money or other valuable consideration by any officer or employee 
18 
of the PEU or REC concerned or the making of such an offer to any such officer or 
19 
employee for not reporting the presence of any of the abovementioned circumstances; 
20 
Provided, however, that the discovery of any of the foregoing circumstances, in order to 
21 
constitute prima facie evidence, must be personally witnessed by and attested to by a 
22 
duly authorized representative of the ERC, a person in authority, or an agent of a person 
23 
in authority. 
24 
 
25 
(b) The possession, control, or custody of an electric power line, equipment, or material by 
26 
any person, natural or juridical, not engaged in the generation, transmission, or distribution 
27 
of electric power, or in the manufacture of such electric power line, equipment, or material 
28 
shall be prima facie evidence that such is the fruit of the offense defined in Section 4 hereof. 
29 
Thus, such electric power line, equipment, or material may be confiscated from the person 
30 
in possession, control, or custody thereof. 
31 
 
32 
SEC. 6. Incentive Scheme. - An incentive scheme by way of a monetary reward .in an amount 
33 
equivalent to twenty percent (20%) of the value of the recovered stolen line, equipment, 
34 
or material shall be given to any person who shall report to the electric power producer 
35 
or generation company, transmission company, PEU, REC, police or other law enforcement 
36 
authority any act which constitutes an offense under Section 4 of this Act. The incentive 
37 
scheme shall also be made available to persons who participate in the apprehension or 
38 
conviction of persons who violate this Act. 
39 


The Department of Energy (DOE), in consultation with electric power producers or 
1 
generation companies, transmission companies, private electric utilities, rural electric 
2 
cooperatives, and consumers, shall promulgate the necessary rules and regulations for the 
3 
effective implementation of this incentive scheme within sixty (60) days from the 
4 
effectivity of this Act. 
5 
 
6 
SEC. 7. Inspection of Electric Service. '- Duly authorized personnel of PEUs or RECs shall, after 
7 
presentation of valid identification cards and inspection report forms, be allowed entry into the 
8 
premises of any dwelling or building, including commercial and government establishments, 
9 
to conduct an inspection of electric service connections in the presence of the owner 
10 
concerned or, in his or her absence, to be witnessed by a person u1 authority or an agent of 
11 
a person in authority with jurisdiction over such dwelling, building, or establishment, in 
12 
order to determine if any violation of this act is being committed. 
13 
 
14 
SEC. 8. Disconnection of Electric Service. -The PEU or REC concerned shall have the right and 
15 
authority to disconnect outright electric service without the need of a court or administrative 
16 
order, and deny restoration of the same, when the customer or someone acting in his behalf 
17 
shall have been caught in flagrante delicto committing any of the acts enumerated in Section 
18 
5(a) hereof, or when any pilfering device or scheme is found or attached to the electric 
19 
service connection or is being used by the consumer at the time an inspection of electric 
20 
service is being conducted; Provided, that the electric service shall not be restored unless 
21 
the customer deposits the amount representu1g the differential billing with the PEU or REC 
22 
concerned or with the competent court, as the case may be; Provided, further, that if the 
23 
court finds that illegal use of electricity was not committed by the same person, the amount 
24 
deposited shall be credited against fi.1hrre billings, with legal interest thereon chargeable 
25 
against the private utility or rural electric cooperative, and the utility or cooperative shall 
26 
be made to immediately pay such person double the value of the payment or deposit with 
27 
legal interest, which amount shall likewise be creditable 
28 
against immediate future billings, without prejudice to any criminal, civil, or 
29 
administrative action that such person may file under existing laws, rules, and 
30 
regulations; Provided, finally, that if the court finds the same person guilty of illegal 
31 
use of electricity, he or she shall, upon final judgment, be made to pay the electric utility 
32 
or rural electric cooperative concerned double the value of the differential billing. 
33 
SEC. 9. Penalties. - The following penalties shall be imposed upon those found to have 
34 
violated this Act: 
35 
a. Where the total amount involved does not exceed One Hundred thousand Pesos 
36 
(Pl00,000.00), the penalty shall be prision correccional in its maximum period to prision 
37 
mayor in its minimum period or a fine of twice the value of the illegal electricity usage, 
38 
or both. In the case of theft or destruction of electric power lines, equipment, or 
39 


materials, the fine shall be five (5) times the value of the line, equipment, or material 
1 
taken or destroyed. 
2 
b. Where the total amount involved is more than One Hundred Thousand Pesos 
3 
(Pl00,000.00) but does not exceed Five Hundred Thousand Pesos (P500,000.00), the 
4 
penalty shall be prision mayor in its maximum period to reclusion temporal or a fine of thrice 
5 
the value of the illegal electricity usage, or both. In the case of theft or destruction of electric 
6 
power lines, equipment, and materials, the fine shall be six (6) times the value of the line, 
7 
equipment, or material taken or destroyed. 
8 
 
9 
c. Where the total amount involved is more than Five Hundred Thousand Pesos 
10 
(P500,000.00), the penalty shall be reclusion temporal to reclusion perpetua or a fine of five 
11 
(5) times the value of the illegal electricity usage, or both. In the case of theft or 
12 
destruction of electric power lines, equipment, and materials, the applicable fine shall 
13 
be ten (10) times the value of the line, equipment, or material taken or destroyed. 
14 
 
15 
If the offense is committed by a juridical entity, the penalty shall be imposed on the 
16 
president, officer, director, board member, partner, manager, or other officer or employee 
17 
who knowingly permitted, knowingly failed to prevent, or was otherwise responsible for 
18 
the commission of the offense. 
19 
 
20 
If the offense is committed by, or in connivance with, an officer or employee of the PEU or 
21 
REU concerned, such officer or employee shall be punished with the penalty of 
22 
imprisonment two (2) degrees higher than the penalties provided herein and shall be 
23 
perpetually disqualified from employment in any PEU or REC and from holding any public 
24 
office. 
25 
 
26 
If the offender has been previously convicted for violating Republic Act No. 7832, 
27 
otherwise known as the Anti-Electricity and Electric Transmission Lines/Materials Pi/ferage Act of 1994, or 
28 
for violating this Act, or has committed more than two (2) of the unlawful acts enumerated in 
29 
Sections 3 and 4 of this Act, he or she shall punished with the penalty of imprisonment two 
30 
(2) degrees higher than the penalties provided herein. 
31 
 
32 
SEC. 10. Authority to Impose Violation of Contract Surcharges. - A PEU or REC may impose 
33 
surcharges, in addition to the value of the electricity pilfered, on the bills of any consumer 
34 
apprehended for tampering with his electric meter or metering facility installed on his or 
35 
her premises, as well as other violations of contract, such as direct connection, use of 
36 
jumper, and other means of illicit usage of electricity found installed in the premises of the 
37 
consumer. The surcharge for the violation of contract shall be collected from and paid by 
38 
the consumer concerned as follows: 
39 


a. First apprehension - Twenty-five percent (25%) of the current bill as surcharge. 
1 
b. Second apprehension - Fifty percent (50%) of the current bill as surcharge. 
2 
c. Third and subsequent apprehensions - One bm1dred percent (100%) of the current bill 
3 
as surcharge. 
4 
 
5 
The PEU or REC is authorized to discontinue the electric service in case the consumer is 
6 
in arrears in the payment of the surcharges. 
7 
 
8 
SEC. 11. Restriction on the Issuance of Temporary Restraining Orders or Writs of Preliminary Injunction. - 
9 
No temporary restraining order (TRO) or writ of preliminary injunction shall be issued by any 
10 
court against any PEU or REC exercising the right and authority to disconnect electric 
11 
service pursuant to Section 8 of this Act; Provided, that a TRO or writ of preliminary injunction 
12 
may be issued upon the filing of a bond with the court, which shall be in the form of cash 
13 
or cashier's check equivalent to the differential billing, penalties, and other charges, or to the 
14 
total value of the subject matter of the action; Provided, however, that such TRO or writ of 
15 
preliminary injunction shall not be issued or, if already issued, shall be dissolved upon the 
16 
filing by the PEU or REC with the court of a counter bond in the same form and amount. 
17 
 
18 
 
19 
SEC. 12. Exclusive Jurisdiction of Courts. - The Regional Trial Court shall have original and 
20 
exclusive jurisdiction over all disputes and controversies arising from the exercise of the 
21 
rights and prerogatives provided under this Act. Neither the ERC nor the National 
22 
Electrification Administration (NEA) shall take cognizance of any complaint or action 
23 
against a PEU or REC exercising its rights under this act. 
24 
 
25 
SEC. 13. Recoverable System Loss Caps. - The ERC shall, within one (1) year from the 
26 
effectivity of this Act, determine the recoverable system loss caps of electric transmission 
27 
and distribution utilities taking into account technical considerations, such as load density, 
28 
sales mix, cost of service, delivery voltage, as well as the viability of PEUs and RECs and 
29 
the interest of the consuming public. 
30 
 
31 
The maximum rate of system loss that a distribution utility may pass on to its customers 
32 
shall be the actual system loss but not exceeding eight and one-half percent (8.5%) of the 
33 
total kilowatt- hours (kWh) generated and purchased for public distribution utilities and 
34 
thirteen percent (13%) for electric cooperatives. 
35 
 
36 
The actual company use not exceeding one percent (1%) of the total kWh generated and 
37 
purchased shall be treated as an expense of distribution utilities in the following manner: 
38 
 
39 


a. For private distribution utilities that are under performance-based regulation, it shall 
1 
be treated as operation and maintenance expense on its next reset. 
2 
b. For private distribution utilities that are not yet under performance-based regulation, it 
3 
shall be treated as operation and maintenance expense on its performance-based 
4 
regulation application. 
5 
c. For electric cooperatives, it shall be treated as operation and maintenance expense 
6 
in the benchmarking methodology. 
7 
 
8 
All distribution utilities and electric cooperatives shall submit to the ERC, through a sworn 
9 
statement, the results of their updated segregated system losses together with their 
10 
annual reports. 
11 
 
12 
SEC. 14. System Loss Reduction Program and Incentives. -The ERC shall develop an incentive 
13 
mechanism to reward consumers and distribution utilities whose actual system losses are 
14 
below the prevailing approved caps. The incentive mechanism so adopted may be 
15 
incorporated by the ERC in the performance incentive scheme wider the performance-based 
16 
regulation for private distribution utilities and in the benchmarking methodology for electric 
17 
cooperatives. Towards this end, expenses associated with any system loss reduction program 
18 
duly approved by the ERC shall be considered part of the capital or operating costs of 
19 
distribution utilities. 
20 
 
21 
 
22 
SEC. 15. Area of Coverage.-The caps provided in Section 13 of this Act shall apply only to 
23 
the area of coverage of PEUs and RECs as of the date of the effectivity of this Act. 
24 
 
25 
SEC. 16. Recovery of Pilferage Losses. - Any PEU or REC which recovers any amount of 
26 
pilferage losses shall, within thirty (30) days from said recovery, report in writing and under 
27 
oath to the ERC the fact of recovery, the date thereof, the name of the consumer concerned, 
28 
the amount recovered, the amount of pilferage loss claimed, the explanation for the failure 
29 
to recover the whole amount claimed, and such other particulars as may be required by the 
30 
ERC. If there is a case pending in court for the recovery of a pilferage loss, no PEU or REC 
31 
shall accept payment from the consumer unless so provided in a compromise agreement 
32 
duly executed by the parties and approved by the court. 
33 
 
34 
SEC. 17. Information Dissemination. - PEUs, RECs, the ERC, and the NEA shall, in cooperation 
35 
with each other, undertake a vigorous campaign to inform consumers of the provisions of 
36 
this Act. PEUs and RECs shall incorporate a faithful condensation of the provisions of 
37 
this Act in its contracts with new consumers. 
38 
SEC. 18. Implementing Rules and Regulations. - The ERC shall, within sixty (60) days from the 
39 


effectivity of this Act, after consultation with the National Transmission Corporation or its 
1 
concessionaire, distribution utilities, electric cooperatives, generation companies, and 
2 
consumers, promulgate the rules and regulations for the effective implementation of this 
3 
Act. 
4 
 
5 
SEC. 19. Separability Clause. - If any provision of this Act is declared w1constitutional or 
6 
invalid, the other parts or provisions hereof which are not affected thereby shall continue to be 
7 
in full force and effect. 
8 
 
9 
SEC. 20. Repealing Clause. - Republic Act No. 7832, otherwise known as the Anti-Electricity 
10 
and Electric Transmission Lines/Materials Pilferage Act of 1994, is hereby repealed. All other laws, 
11 
decrees, executive orders and issuances, rules and regulations, and other issuances, or parts 
12 
thereof, that are inconsistent with the provisions of this Act are hereby repealed or modified 
13 
accordingly. 
14 
 
15 
SEC. 21. Effectivity Clause.- This Act shall take effect fifteen (15) days after its publication in 
16 
the Official Gazette or in a newspaper of general circulation. 
17 
 
18 
Approved, 
19