RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT NO.

7832

Pursuant to Section 14 of Republic Act No. 7832, the Energy Regulatory

Board hereby adopts and promulgates the following Rules and Regulations to
implement the aforesaid law. cDHAES

RULE I
General Provisions
SECTION 1. Title. — These Rules shall be known as the Implementing
Rules and Regulations of the Anti-Pilferage of Electricity and Theft of Electric
Transmission Lines/Materials Act of 1994.
SECTION 2. Construction. — These Rules shall be strictly construed to
attain the efficient and effective implementation of R.A. 7832.
SECTION 3. Definition of Terms. — As used in this Rules:
a) "ERB" means the Energy Regulatory Board;
b) "DOE" means the Department of Energy;
c) "NEA" means the National Electrification Administration;
d) "NPC" means the National Power Corporation;
e) "Utility" means the Private or Investor-owned Electric Utility and
that owned and/or operated by the Municipal, City,
Provincial or National Government;
f) "Cooperative" means the Rural Electric Cooperative;
g) "Electric power transmission line/material" refers to electric
power transmission steel towers, wood-poles, cables, wires,
insulators, line hardwares, electrical conductors and other
related items with minimum voltage of sixty-nine kilovolts
(69 kv), such as the following:
(1) Steel transmission line towers made of galvanized steel
angular members and plates or creosoted and/or
tannelized woodpoles/concrete poles and designed
to carry and support the conductors;
(2) Aluminum conductor steel reinforced (ACSR) in excess of
one hundred (100) MCM;
(3) Overhead 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 designed
to insulate the electrical conductors from steel towers
or woodpoles; and
(5) Various transmission line hardwares and materials made
of aluminum alloy or malleable steel and designed to
inter-connect the towers, conductors, ground wires,
and insulators mentioned in subparagraphs (1), (2), (3)
and (4) above for the safe and reliable operation of the
transmission lines.
h) "Differential billing" shall refer to the amount to be charged to
the person concerned for the unbilled electricity illegally
consumed as determined through the use of methodologies
outlined in Section 6 of R.A. 7832;
i) "Apprehension" shall be understood to mean the discovery of
the presence of any of circumstances enumerated in
Section 4 of R.A. No. 7832 in the establishment or outfit of
the consumer concerned as personally witnessed and
attested to by the consumer concerned or a duly authorized
ERB representative or any officer of the law, as the case
may be.
j) "Power sold by NPC or any other entity that supplies power
directly to a consumer" is deemed to be sale directly to the
consumer if: (1) the point of metering by the NPC or any
other utility is less than one thousand (1,000) meters from
the consumer, or (2) the consumer's electric consumption is
three (3%) or more of the total load consumption of all the
customers of the utility, or (3) there is no other consumer
connected to the distribution line of the utility which
connects to the NPC or any other utility point of metering to
the consumer meter;
k) "Current bill" shall mean the latest monthly bill served by the
utility or cooperative which does not include any period
before the time of apprehension;
l) "Current rate" shall mean the average rate of electricity per
kilowatthour as reflected in the current bill.
 RULE II
Illegal Use of Electricity and Theft of Electric Power Transmission Lines and
Materials
SECTION 1. Illegal Use of Electricity. — It shall be unlawful for any
person, natural or juridical, private or public to:
(a) Tap, make or cause to be made any connection with overhead
lines, service drops, or other electric service wires, without
previous authority or consent of the private electric utility or
rural electric cooperative concerned;
(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 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 which interferes with
the proper or accurate registry or metering of electric
current or otherwise results in its diversion in a manner
whereby electricity is stolen or wasted;
(d) Damage or destroy an electric meter, equipment, wire or
conduit or allow any of them to be so damaged or
destroyed as to interfere with the proper or accurate
metering of electric current; and
(e) Knowingly use or receive the direct benefit of electric service
obtained through any of the acts mentioned in subsections
(a), (b), (c) and (d) above.
SECTION 2. Theft of Electric Power Transmission Lines and Materials.
— It shall be unlawful for any person, natural or juridical, public or private to:
(a) Cut, saw, slice, separate, split, severe, smelt or remove any
electric power transmission line/material or meter from a
tower, pole, 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;
(b) 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 line/material or meter from a
tower, pole, any other installation or place of installation, or
any place or site where it 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;
(c) Store, possess or otherwise keep in his premises, custody or
control, any electrical power transmission line/material or
meter without the consent of the owner, whether or not the
act is done for profit or gain; and
(d) Load, carry, ship or move from one place to another, whether
by land, air or sea any electrical power transmission
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 NPC or its regional office
concerned, as the case may be. DCIEac

RULE III
Prima Facie Evidence
SECTION 1. Prima Facie Evidence of Illegal Use of Electricity. — The
presence of any of the following circumstances shall constitute prima
facie evidence of illegal use of electricity by the person benefited thereby:
(a) The presence of a bored hole on the glass cover of the electric
meter or at the back or any part of said meter;
(b) The presence of salt, sugar and other elements inside the
electric meter that could result in the inaccurate registration
of the meter's internal parts to prevent its accurate
registration of consumption of electricity;
(c) The existence of any wiring connection which affects the
normal operation or registration of the electric meter;
(d) The absence of an ERB/NEA seal or the presence of a
tampered, broken or fake seal on the meter or mutilated,
altered or tampered meter recording chart or graph or
computerized chart, graph or log;
(e) The presence of a current reversing transformer, jumper,
shorting and/or shunting wire and/or loop connection or any
other similar device in any part of a building or its premises
 which is subject to the control of the consumer or on the
electric meter;
(f) The mutilation, alteration, reconnection, disconnection,
bypassing or tampering of instruments, transformers and
accessories;
(g) The destruction of or attempt to destroy any integral accessory
of the metering devise box which encases an electric meter
or its metering accessories; and
(h) The acceptance of money and/or other valuable consideration
by any officer or employee of the electric utility concerned
or the making of such an offer to any such officer or
employee for not reporting the presence of any of the
circumstances enumerated in subparagraphs (a), (b), (c), (d),
(e), (f ), or (g), hereof.
A prima facie evidence of illegal use of electricity shall be the basis for:
(a) immediate disconnection by the electric utility or cooperative to such
person after due notice; (b) the holding of preliminary investigation by the
prosecutor and the subsequent filing in court of the pertinent information; and
(c) the lifting of any temporary restraining order or injunction which may have
been issued against a utility or cooperative.
In order to constitute prima facie evidence, the discovery of any of the
circumstances enumerated in Section 1 hereof, must be personally witnessed
and attested to by the consumer concerned or a duly authorized ERB
representative or any officer of the law, as the case may be.
An ERB authorized representative is one who is assigned to conduct
testing of electric meters or inspection of electric lines and facilities of any
distribution entity or one who may be specially authorized by the duly
authorized head of the main or regional ERB offices.
An officer of the law is any person who, by direct provision of law or by
election or by appointment by competent authority, is charged with the
maintenance of public order and the protection and security of life and
property, such as barangay captain, barangay chairman, barangay
councilman, barangay leader, officer or member of Barangay Community
Brigades, barangay policeman, PNP policeman, municipal councilor,
municipal mayor and provincial fiscal.
SECTION 2. Prima Facie Evidence of Theft of Electric Power
Transmission Lines and Materials. — The possession, control or custody of
electric power transmission 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 line/material shall
be prima facie evidence that such line/material is the fruit of the offense
defined in Section 2, Rule II hereof, and such line/material may be confiscated
from the person in possession, control or custody thereof.
RULE IV
Incentives
SECTION 1. Incentive Scheme. — An incentive scheme by way of a
monetary reward in the minimum amount of 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 2, Rule II hereof. The
Department of Energy (DOE), in consultation with the NPC, shall issue the
necessary guidelines for the proper implementation of this incentive scheme
within thirty (30) days from the effectivity of R.A. 7832.
RULE V
Disconnection of Electric Service
SECTION 1. Right to Disconnect and its Requirements. — The utility or
cooperative concerned shall have the right and authority to disconnect
immediately the electric service of any person, natural or juridical, without the
need of a court or administrative order and deny restoration of the same, in the
following circumstances:
(a) When the owner/occupant of the house or establishment
concerned or someone acting in his behalf shall have been
caught in flagrante delicto doing any of the acts enumerated
in Section 1, Rule III hereof, Provided: that a written notice
or warning to that effect has been served by the utility or
cooperative concerned to the owner of the
house/establishment or his duly authorized representative,
prior to such disconnection.
(b) When any of the circumstances enumerated in Section 1, Rule
III shall have been discovered for the second time, Provided:
that a written notice or warning shall have been issued upon
the first discovery.
The written notice or warning being referred to herein shall be served
prior to such disconnection and shall indicate the name and address of the
consumer, consumer account number, date of apprehension, findings of fact,
amount of energy pilfered in kilowatthour, the amount representing the
differential billing and the method used in computing the differential billing as
determined herein, which shall indicate the following:
(a) Computation of the unbilled consumption in kilowatthour.
(b) The period to be used in computing the differential billing.
(c) The latest Inspection Report prior to apprehension.
SECTION 2. Deposit. — The utility or cooperative concerned shall not
immediately disconnect or shall immediately restore the electric service upon
the deposit by the person denied the service with the utility or the cooperative
concerned or with the competent court, as the case may be, of the amount
representing the differential billing.
RULE VI
Penalties
SECTION 1. Liability of the Utility/Cooperative. — If the court finds by
final judgment that the person has not committed illegal use of electricity, the
amount deposited shall be credited against future billings, with legal interest
thereon chargeable against the utility or cooperative. ADEacC

Likewise, 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 be creditable against immediate future billings.
The foregoing remedies are without prejudice to any criminal, civil or
administrative action that such person may be entitled to file under existing
laws, rules and regulations.
SECTION 2. Liabilities Under Section 1, Rule II Hereof. — If the person
has been found by final judgment to have violated Section 1, Rule II hereof, he
shall be made to pay the utility or the cooperative concerned double the value
of the estimated electricity illegally used which is referred to in this section as
differential billing, in addition to the penalty of prision mayor or a fine of Ten
Thousand Pesos (P10,000.00) to Twenty Thousand Pesos (P20,000.00) or
both, at the discretion of the court.
(a) If the offense is committed by, or in connivance with, an officer
or employee of the power company, electric utility or rural
electric cooperative concerned, such officer or employee
shall, upon conviction, be punished with a penalty one (1)
degree higher than the penalty provided herein, and
forthwith be dismissed and perpetually disqualified from
employment in any public or private utility or service
company and from holding any public office.
 (b) If in committing any of the acts enumerated in Section 1, Rule II
hereof, any of the other acts enumerated is also committed,
then the penalty next higher in degree as provided herein
shall be imposed.
(c) If in committing any of the acts enumerated in Section 1, Rule II
hereof, any of the other acts enumerated is also committed
by, or in connivance with an officer or employee of the
power company, utility or cooperative concerned, such
officer or employee shall, upon conviction, be punished with
a penalty of one (1) degree higher than the penalty provided
herein, and forthwith be dismissed and perpetually
disqualified from employment in any public or private utility
or service company. Likewise the electric utility concerned
which shall have knowingly permitted or having knowledge
of its commission shall have failed to prevent the same, or
was otherwise guilty of negligence in connection with the
commission thereof, shall be made to pay a fine not
exceeding triple the amount of the "differential billing"
subject to the discretion of the courts.
(d) If the violation is committed by a partnership, firm, corporation,
association, or any other legal entity, including a
government-owned or controlled corporation, the penalty
shall be imposed on the president, manager, and each of
the officers thereof who shall have knowingly permitted,
failed to prevent or was otherwise responsible for the
commission of the offense.
SECTION 3. Liabilities Under Section 2, Rule II Hereof. — A person
found by final judgement to have violated Section 2, Rule II hereof, shall be
meted the penalty of reclusion temporal or a fine ranging from Fifty Thousand
Pesos (P50,000.00) to One Hundred Thousand Pesos (P100,000.00) or both,
at the discretion of the court.
(a) If the offense is committed by, or in connivance with, an officer
or employee of the power company, utility or cooperative
concerned, such officer or employee shall, upon conviction,
be punished with a penalty one (1) degree higher than the
penalty provided herein, and forthwith be dismissed and
perpetually disqualified from employment in any public or
private utility or service company and from holding any
public office.
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 (b) If in committing any of the acts enumerated in Section 2, Rule II
hereof, any of the other acts enumerated is also committed,
then the penalty next higher in degree as provided herein
shall be imposed.
(c) If in committing any of the acts enumerated in Section 2, Rule II
hereof, any of the other acts enumerated is also committed
by, or in connivance with an officer or employee of an
electric utility concerned, such officer or employee shall,
upon conviction, be punished with a penalty of one (1)
degree higher than the penalty provided herein, and
forthwith be dismissed and perpetually disqualified from
employment in any public or private utility or service
company. Likewise, the utility concerned which shall have
knowingly permitted or having knowledge of its commission
shall have failed to prevent the same, or was otherwise
guilty of negligence in connection with the commission
thereof, shall be made to pay a fine not exceeding triple the
amount of the "differential billing" subject to the discretion
of the courts.
(d) If the violation is committed by a partnership, firm, corporation,
association, or any other legal entity, including a
government-owned or controlled corporation, the penalty
shall be imposed on the president, manager, and each of
the officers thereof who shall have knowingly permitted,
failed to prevent or was otherwise responsible for the
commission of the offense.
RULE VII
Billings and Surcharges
SECTION 1. Testing of Watthour Meter Standard Equipment. — The
NPC, the NEA and all electric utilities shall submit all their working watthour
meter standard equipment (which are used in the testing of their respective
consumers' watthour meters) for testing and sealing by the ERB within thirty
(30) days following the publication of this Implementing Rules and Regulations
and every year thereafter.
The NEA shall likewise furnish the ERB, within the same period
aboveprescribed, with copies of the test reports on the calibration of the
watthour meter standard equipment of all the electric cooperatives.
 SECTION 2. Testing of Meters. — All electric utilities and cooperatives,
as the case may be, shall cause the calibration of the meters of their respective
customers at least once every two (2) years.
The said utilities and cooperatives shall likewise furnish the ERB with
copies of the test reports within thirty (30) days after each calibration.
SECTION 3. Computation of the Differential Billing. — The differential
billing shall be determined by multiplying the unbilled consumption in
kilowatthour, the period covered by the differential billing and the current rate
of electricity at the time of apprehension.
SECTION 4. Computation of the Unbilled Consumption in Kilowatthour.
— The unbilled consumption in kilowatthour may be computed by using the
following methodologies:
4.1 For cases falling under paragraphs (a), (e), (f) and (g) Section 1,
Rule III hereof, the following methodologies shall be used:
(a) The estimated monthly consumption as per report of
load inspection conducted during the time of
discovery;
(b) The highest recorded monthly consumption within the
five-year period preceding the time of the 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 the discovery.
4.2 For cases falling under paragraphs (b), (c) and (d) Section 1,
Rule III hereof, the following methodologies shall be used:
(a) The result of the ERB test during the time of the
discovery;
(b) 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;
(c) The estimated monthly consumption as per report of
load inspection conducted during the time of
discovery;
 (d) The highest recorded monthly consumption within four
(4) months after the time of the discovery; or
(e) The highest recorded monthly consumption within the
five-year period preceding the time of the discovery.
4.3 For cases falling under paragraph (h) Section 1, Rule III hereof,
any of the foregoing methodologies may be used, whichever
is applicable.
SECTION 5. Period to be Recovered. — In determining the period to be
recovered under the differential billing, the following shall be considered:
a. When there was change in the customer's service connection,
such as change of meter, change of seal or reconnection, or
replacement of parts, the period to be recovered under the
differential billing shall be reckoned from the time of the last
inspection.
b. In the absence thereof, the period to be recovered under the
differential billing shall start from the time the electric
service of the person concerned recorded an abrupt or
abnormal drop in consumption; or
In the absence of both, a maximum of sixty (60) billing months, up to the
time of the discovery may be used as basis for the consumption; Provided,
however, that if the person concerned presents adequate and indubitable
proof showing that the period to be recovered by the differential billing is less
than sixty (60) billing months, the utility or cooperative may recompute the
amount of the differential billing based on the established period for recovery.
The period to be used shall, in no case, be less than one (1) year
preceding the date of discovery of the illegal use of electricity.
In cases where the affected period is less than one (1) year, the utility or
cooperative may be allowed to compute for the differential billing using one (1)
year as the minimum basis for computation.
SECTION 6. Discovery of Prima Facie Evidence. — The electric utility or
rural electric cooperative, upon discovery of any of the circumstances
mentioned in Rule III hereof, shall notify in writing the owner/occupant of the
house or establishment concerned or someone of suitable age and discretion
residing therein and acting in behalf of the owner/occupant of the incident.
In case the apprehension is witnessed by an officer of the law and not
by an ERB authorized representative, the tampered electric meter subject of
the offense must be placed in a suitable container, properly identified and
sealed, and shall be opened only for testing in the ERB's meter laboratory by
the duly authorized representative of the Board.
SECTION 7. Inspection Report. — An Inspection Report must be
accomplished by the utility or cooperative concerned after every inspection,
monitoring of meter installation or apprehension, indicating the following:
a. Date and time of the inspection;
b. Condition of the meters, instrument transformers and metering
installations;
c. Changes made with the connections during the time of the
inspection;
d. Replacement made on the metering installations, if there is any;
e. Signature over the printed name of the inspector; and
f. Signature over the printed name of the consumer or his duly
authorized representative.
The accomplished Inspection Report shall be attested to by the
authorized ERB representative or by the officer of the law, as the case may be.
The original copy of the Inspection Report shall be kept by the electric
utility or electric cooperative concerned and shall not be destroyed without
prior authority from the ERB. A duplicate of the said report shall likewise be
furnished to the owner/occupant of the establishment concerned or someone
of suitable age and discretion residing therein and acting in behalf of the
owner/occupant.
SECTION 8. Imposition of Surcharges. — An electric utility or rural
electric cooperative may impose surcharges in addition to the value of
electricity pilfered, on the bills of any consumer apprehended for tampering
with his electric meter/metering facility installed on his premises, as well as
other violations of contract like direct connection, use of jumper and other
means of illicit usage of electricity found installed in the premises of the
consumer. The surcharge for the violation of contract shall be collected from
and paid by the consumer concerned as follows: DTEcSa

a. First apprehension — twenty-five percent (25%) of the current

bill;
b. Second apprehension — fifty percent (50%) of the current bill;
c. Third and subsequent apprehensions — one hundred percent
(100%) of the current bill.
 The electric utility or rural electric cooperative is authorized to
discontinue electric service in case the consumer is in arrears in the payment
of the above imposed surcharges.
RULE VIII
Issuance of Restraining Orders or Writs of Injunction
SECTION 1. Issuance of the Writ of Injunction. — Unless there is a prima
facie evidence that the disconnection was made with evident bad faith or grave
abuse of authority, no writ of injunction or restraining order shall be issued by
any court against any utility or cooperative exercising the right and authority to
disconnect electric service as provided in this Rules.
SECTION 2. Filing of Bond/Counterbond. — A writ of injunction or
restraining order issued by a court in the absence of evident bad faith or grave
abuse of authority on the part of the utility or cooperative concerned shall be
effective only when the affected person/customer files a bond with the court
in the form of cash or cashier's check equivalent to the differential billing,
penalties and other charges in cases of illegal use of electricity. Such writ of
injunction or restraining order shall automatically be refused or, if already
granted, shall be dissolved upon the filing by the utility or cooperative
concerned of a counterbond similar in form and amount as that above
registered.
SECTION 3. Report to the Supreme Court. — Whenever a writ of
injunction or restraining order is granted, the court which issued the same shall
submit a report to the Supreme Court within ten (10) days from its issuance,
setting forth in detail the grounds or reasons therefor.
RULE IX
Rationalization of System Loss
SECTION 1. Caps on Recoverable System Loss Allowed to Private
Electric Utilities. — The maximum rate of system loss that the utility can pass
on to its customers shall be as follows:
1. Fourteen and a half percent (14 1/2%) effective on February
1996 billing.
2. Thirteen and one fourth percent (13 1/4%) effective on February
1997 billing.
3. Eleven and three-fourths percent (11 3/4%) effective on
February 1998 billing.
4. Nine and a half percent ( 9 1/2%) effective on February 1999
billing.
 SECTION 2. Automatic Cost Adjustment Formula. — Each and every
utility shall file with the ERB, on or before September 30, 1995, an application
for approval of an amended Generation Charge or Power Cost Adjustment
formula that would reflect the new system loss cap to be included in its
schedule of rates.
The automatic cost adjustment clause of every utility shall be guided by
the following formula:
Generation Charge
Subsidizing consumption shall be charged a generation charge per
KWH equal to:
A1
——————— x ——————— – E
B – (C + D) 1 – FT
Where:
A = Cost of electricity purchased and generated for the previous
month less revenue from subsidized Kwhrs on generation
charge as applicable
B = Total KWH purchased and generated for the previous month
C = The actual system loss but not to exceed the maximum
recoverable rate of system loss in Kwh plus actual
company use in Kwhrs but not to exceed 1% of total
KWHRS purchased and generated aDECHI

D = KWH consumed by subsidized consumers

E = Applicable base cost of the amount incorporated into their
basic rate per KWH
FT = Franchise tax rate
SECTION 3. Fixing the Level and Effectivity of the New System Loss for
the Utility. — Each and every utility shall file with the ERB, before the end of
the fourth year following the effectivity of this Rules, an application for the
purpose of determining the following:
a) whether the caps fixed shall be reduced further which shall in
no case be lower than nine percent (9%) after taking into
account the viability of the private electric utilities and the
interest of the consumers;
b) the date of the effectivity of the new caps; and
 c) the permissible levels of recovery of system loss in areas that
may be added to the franchise area of the private electric
utility after the date of the effectivity of R.A. No. 7832.
SECTION 4. Caps on System Loss Allowed to Rural Electric
Cooperatives. — The maximum rate of system loss that the cooperative can
pass on to its customers shall be as follows:
a. Twenty-two percent (22%) effective on February 1996 billing.
b. Twenty percent (20%) effective on February 1997 billing.
c. Eighteen percent (18%) effective on February 1998 billing.
d. Sixteen percent (16%) effective on February 1999 billing.
e. Fourteen percent (14%) effective on February 2000 billing.
SECTION 5. Automatic Cost Adjustment Formula. — Each and every
cooperative shall file with the ERB, on or before September 30, 1995, an
application for approval of an amended Purchased Power Adjustment Clause
that would reflect the new system loss cap to be included in its schedule of
rates.
The automatic cost adjustment of every electric cooperative shall be
guided by the following formula:
Purchased Power Adjustment Clause
A
(PPA) = —————— – E
B – (C + D)
Where:
A = Cost of electricity purchased and generated for the previous
month
B = Total Kwh purchased and generated for the previous month
C = The actual system loss but not to exceed the maximum
recoverable rate of system loss in Kwh plus actual
company use in Kwhrs but not to exceed 1% of total
KWHRS purchased and generated
D = KWH consumed by subsidized consumers
E = Applicable base cost of power equal to the amount
incorporated into their basic rate per kwh
 SECTION 6. Fixing the Level and Effectivity of the New System Loss
Cap. — Each and every cooperative shall file an application with the ERB,
before the end of the fifth year following the effectivity of this Rules, to
determine the following:
a. whether the caps fixed shall be reduced further which shall in
no case be lower than nine percent (9%) after taking into
account the viability of the electric cooperatives and the
interest of the consumers;
b. the date fixed for the effectivity of the new caps; and
c. the permissible levels of recovery of system loss in the areas
that may be added in the area of coverage of the rural
electric cooperative after the date of the effectivity of R.A.
No. 7832.
SECTION 7. Authority of the Energy Regulatory Board. — Nothing in this
Rule shall impair the authority of the ERB to reduce or phase out technical or
design losses as a component of system losses.
RULE X
Recovery of Pilferage Losses
SECTION 1. Submission of Report. — A utility or cooperative which
recovers any amount of pilferage losses shall submit to the ERB, within thirty
(30) days from said recovery, a written report under oath, which shall contain
the following:
a. the fact of recovery
b. the date of recovery
c. the name of consumer concerned
d. the amounts recovered including the amounts resulting from
compromise agreement and surcharges imposed, if any
e. the amount of pilferage loss claimed
f. the explanation for the failure to recover the whole amount
claimed
g. itemized expenses incurred, if there is any
h. the amount passed on to the consumer
The utility or cooperative shall not accept payment from the consumer
during the pendency of the case for the recovery of a pilferage loss, unless so
provided in a compromise agreement duly executed by the parties and
approved by the Court.
SECTION 2. The full amount recovered by the utility or cooperative
under the preceding section shall be reflected as a reduction in the customer's
electric bill through the automatic cost adjustment formula abovementioned,
the application of which shall be verified and confirmed by the Board through
an Order.
RULE XI
Information Dissemination
SECTION 1. Information Dissemination. — The private electric utilities,
the rural electric cooperatives, the NPC, and the National Electrification
Administration (NEA) shall, in cooperation with each other, undertake vigorous
campaign to inform their consumers of the provisions of the Implementing
Rules and Regulations, within sixty (60) days from the effectivity thereof and at
least once a year thereafter, and to incorporate a faithful condensation of said
provisions in the contract with new consumers.
RULE XII
Repeal and Separability
SECTION 1. Repeal and Separability. — All existing rules, regulations or
orders or any part thereof inconsistent with this Rules are hereby repealed,
amended or modified accordingly. If any part or provision of this Rules is
declared unconstitutional or illegal, the other parts or provisions shall remain
valid.CAIaDT

RULE XIII
Effectivity
SECTION 1. Effectivity. — This Rules shall take effect fifteen (15) days
after its publication in two newspapers of general circulation in the country.
Pasig City, July 7, 1995