Legal Update 6 of 2018

CASE

TENAGA NASIONAL BHD V ASIA KNIGHT BHD (PREVIOUSLY KNOWN AS PAHANCO CORP BHD) [2017] 5 MLJ 681

 

ISSUE

Can TNB claim for the loss of revenue due to the theft of electricity from the account holder with TNB [Consumer] even if the account holder was not the one who stole the electricity?

 

BRIEF FACTS  

  • TNB claimed against Asia Knight for loss of revenue and expenses due to meter tampering pursuant to s 38 of the Electricity Supply Act 1990 (‘the Act’).
  • TNB’s employees had discovered physical evidence of tampering to the meter installation.
  • A foreign copper object was inserted as a bypass at the test terminal block. Photographs of the physical evidence and a police report were produced.
  • The High Court dismissed TNB’s claim on the main ground that they had failed to prove that Asia Knight had access to the meter installation.
  • TNB then appealed against the dismissal of its claim.

DECISION: Appeal Allowed  

  • The discovery of the foreign copper object which was inserted in the meter was proof of the fact of tampering.
  • TNB was not required to prove that the perpetrator of the tampering was Asia Knight or that they had access to the meter installation before a claim for loss of revenue could be made. TNB’s entitlement to claim for the loss of revenue was a statutory right against the Consumer [account holder].
  • TNB was entitled to claim for loss of revenue and expenses.
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