MANILA, Philippines—The Court of Appeals has ordered Manila Electric Co. to pay P800,000 in damages and reimbursements to a private company that complained its power supply was disconnected without notice and that it had overpaid Meralco.

The complainant, Permanent Light Manufacturing Enterprises—a light fixtures and metal cabinet company—was a supplier for the Government Service Insurance System, which has been involved in a media war with Meralco over the latter’s power rates.

The court ruling was obtained by reporters on the eve of a board room battle for control of Meralco’s management involving GSIS.

In its ruling, the appellate court scolded Meralco for taking almost seven years to attend to the complaint of Permanent Light about its electric meter that was “running at an unusually high speed.”

It ordered Meralco to pay Permanent Light P500,000 in temperate damages for the loss the latter suffered as a result of its alleged overpayment of its bills.

The Pasig City Regional Trial Court (RTC) earlier fixed the amount that Meralco should pay at P1.1 million but the appellate court decided on a lower figure, since the actual amount of overpayment could not be computed with certainty.

Besides directing Meralco to pay P1.1 million representing overpayments made by Permanent Light, the Pasig RTC had also ordered the power distributor to pay P200,000 in moral damages and P100,000 in exemplary damages, plus attorney’s fees.

In awarding moral damages, the Pasig RTC said it was for the inconvenience and anxiety suffered by Permanent Light, while the P100,000 in damages was to serve as a lesson to Meralco to follow procedures in disconnecting someone’s power supply.

Meralco contests decision

Meralco contested the ruling in the Court of Appeals, saying Permanent Light was accorded due process before its power was cut off. The utility also argued that there should have been no moral and exemplary damages awarded.

In upholding the award of moral and exemplary damages, the appellate court pointed out that Meralco cut off Permanent Light’s power without serving it 48-hour notice as required under the law.

Importance of electricity

The disconnection was done “in utter abuse of right and bad faith,” the court added in its decision penned by Justice Japar Dimaampao.

The appellate court also said that the cutting off of the power supply was done at a critical time for Permanent Light, when it was rushing orders for steel cabinets to the GSIS.

The court also noted the importance of electricity to a business, which was why arbitrarily cutting off the power supply could cause harm to a company.

“Electricity is a basic necessity, the generation and distribution of which is imbued with public interest so that the premature disconnection of supply thereof is indicative of an intent to cause mental and moral suffering to appellees [Permanent Light],” it said.

Thus, the court added, there was no error when the RTC ordered the payment of moral and exemplary damages to Permanent Light.

As for the P1.1 million overpayment to be refunded to Permanent Light, the appellate court said the basis for the computation made by the company was not sufficient.

But since Permanent Light did suffer a loss from the fast-moving electric meter, the appellate court found it necessary to award it P500,000 in damages.

‘Remained deaf’

The appellate court voiced displeasure over Meralco’s slow response to the company’s complaint about its electric meter.

“Appellant [Meralco] should have listened to the complaints of its client and immediately replaced the highly contested second meter when appellees [Permanent Light] aired their concerns about it,” the court said.

It added that Meralco “remained deaf” to the company’s grievances for nearly seven years.

“That appellant [Meralco] is the sole electric provider in the country makes matters even worse as it is the only entity which could possibly address appellees’ woes,” the court said.