On Friday, the Supreme Court (SC) ruled that Manila Electric (Meralco) must provide written notice at least 48 hours before electricity disconnection.
Previously, Meralco submitted a petition contesting the decision of the Court of Appeals (CA), which found them guilty of violating Republic Act (RA) 7832 by abruptly cutting off a consumer’s electricity without prior notice.
After appealing the CA decision, Meralco elevated the case to the SC, but the Supreme Court aligned with the appellate court, dismissing Meralco’s appeal.
The court mandated that Meralco serve a written notice to the consumer before terminating the electric supply based on the specified grounds in Section 4(a) of RA 7832.
Highlighting the importance of due process, the High Court stressed that the written notice should be given at least 48 hours before the disconnection.
Emphasizing the violation of due process requirements, the SC underscored that Meralco’s immediate disconnection of the consumer’s electricity on the same day the notice was given infringed upon the established protocols.
Additionally, the SC attributed bad faith to Meralco for disregarding RA 7832 while disconnecting the customer’s electric service.
As a result, the SC rejected Meralco’s Petition for Review on Certiorari, thereby upholding the CA’s Decision dated November 26, 2020, in CA-G.R. CV No. 111808.
The SC adjusted the damages awarded, reducing temperate damages to P50,000, removing moral damages due to insufficient basis, and lowering exemplary damages to P100,000.
Furthermore, the SC affirmed that the remaining aspects of the CA ruling would remain valid.
The case originated when Lucy Lu, a Meralco customer, filed a complaint in court, providing an account of an incident on December 9, 1999.
Meralco representatives forcibly entered the premises of her family business in Valenzuela City and abruptly disconnected the electricity supply without issuing a Notice of Disconnection.
In 2018, Lu succeeded in her damages complaint against Meralco in the Regional Trial Court (RTC) of Valenzuela City Branch 172.
Meralco then appealed the decision to the CA, which ruled in favor of Lu in 2020.
Despite Meralco’s subsequent appeal to the Supreme Court, the verdict upheld Lu’s entitlement to receive a written notice at least two days before any disconnection.
Meanwhile, on the same day, Meralco released a separate statement expressing its commitment to honor and comply with the decision of the High Court.
Acknowledging that the incident occurred in 1999, the statement emphasized Meralco’s consistent policy of issuing a 48-hour notice before disconnecting any service to adhere to due process requirements.
PSE:MER closed on Friday, June 30, 2023, at P335.00 per share, up by 1.52%. MER is also up by 12.12% year-to-date.
The electric company is poised to breach its resistance at P335.00, which will make P352.00 as its next resistance level.
If MER bounces away from P335.00 next week, the support at P321.40 remains.
Today’s volume is higher than 50% of MER’s 10-day volume average.
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