Court of Appeals orders Meralco: Pay consumer P.4 million damages

MANILA, Philippines - The Court of Appeals (CA) has affirmed its decision ordering the Manila Electric Co. (Meralco) to pay over P400,000 in damages to the heirs of the late ambassador Enrique Syquia, whose subscription was cut after the power firm accused him of making illegal power connections 10 years ago.

In a resolution penned by Associate Justice Monina Arevalo-Zenarosa, the special former 15th division of the appellate court denied Meralco’s appeal on its Nov. 27, 2008 decision granting the petition of Syquia’s widow, Leticia, to collect damages amounting to P417,000.  

“We cannot allow Meralco to act virtually as prosecutor and judge in imposing the penalty of disconnection due to alleged meter tampering.  

“That would not sit well in a democratic country. After all, Meralco is a monopoly that derives its power from the government. Clothing it with unilateral authority to disconnect would be equivalent to giving it a license to tyrannize its hapless customers,” the CA said.

The CA ruled that Meralco failed to raise new issues that would warrant the reversal of its earlier decision.     

Meralco filed its motion for reconsideration on Dec. 16 last year alleging that the CA erred in its finding that the company did not observe the requirements under Republic Act 7832 (anti-pilferage of electricity law) on the requirement of prior notice and presence of officers of law or Energy Regulatory Board representatives when it cut the supply of electricity to the Syquias.     

In its earlier decision, the CA affirmed with modification the Makati regional trial court’s ruling that Meralco cannot at will disconnect the electric service of its errant customers without prior notice.     

Citing Section 97 of the Revised Order No. 1 of the Public Service Commission, the CA said the government is justified in the exercise of its regulatory power over a public utility such as Meralco, which has a monopoly of the supply of electrical power in Metro Manila and some nearby municipalities.     

“The state may regulate… the conditions under which and the manner by which a public utility such as Meralco may effect a disconnection of service to a delinquent customer. Among others, a prior written notice to the customer is required before disconnection of the service. Failure to give such prior notice amounts to a tort,” the CA ruled.     

The CA said only Meralco personnel were present during the inspection of the alleged jumper outside the Syquia residence in North Forbes Park, Makati City on Jan. 21, 1999. 

Prior to his death in 2005, Syquia was an international law expert and erstwhile Philippine ambassador to Malta. He founded the Syquia and Syquia law offices while the case was still pending in the Makati court.     

Upon allegedly discovering the jumper, the Meralco team did not inform Syquia’s wife but instead told her their electricity had to be temporarily cut and a reconnection can be made only upon instructions from their supervisor. At that time, Syquia himself was not at home.

The alleged discovery of the jumper was only made known to the Syquias after the ambassador paid a P119,000 deposit with Meralco’s legal department. The power firm demanded a payment for differential billing of P867,294, reportedly as a result of the installation of the jumper.     

The electricity was restored on the same day it was disconnected but the Syquias filed an action for damages against Meralco before the Makati court.     

During the court proceedings, Meralco did not present the contentious “jumper” that brought the parties to court.     

The Makati court found Meralco liable and ordered it to pay the Syquias P357,000 as actual damages, P200,000 as moral damages, P100,000 as exemplary damages, and P50,000 as attorney’s fee.     

The lower court imposed an interest of 12 percent per annum on the monetary awards from the date of the filing of the complaint on Nov. 6, 2001 until fully paid.

Meralco appealed the lower court decision before the CA, which affirmed the ruling with modification. The CA found the grant of moral damages excessive and reduced it to 30,000 since Meralco restored electricity on the same day.