Update: Success having RM40,000 Exemplary Damages Awarded Against TNB

On 2-9-2020, our Partner Mr CM Lai won a case against Tenaga Nasional Berhad in a dispute involving disconnection of electricity supply on a seafood processing factory at the Johor Bahru High Court.

In the said case, after disconnecting our client's electricity supply, Tenaga Nasional Berhad had arbitrarily set a requirement for our client to pay up a sum of RM5.8 million before they could have their electricity supply reconnected.

The presiding judge Yang Arif Ms Evrol Mariette Peters held that Tenaga Nasional Berhad has no right to disconnect electricity supply after the meter was made good under the section 38(1) of the Electricity Supply Act 1990 as follows:-

Disconnection of supply of electricity

38. (1) Where any person employed by a licensee finds upon any premises evidence which gives reasonable grounds for him to believe that an offence has been committed under subsection 37(1), (3) or (14), the licensee or any person duly authorized by the licensee shall within three working days from the date of such finding inform the Commission in writing, and the licensee may, upon giving not less than forty eight hours’ notice from the same date in such form as may be prescribed, cause the supply of electricity to be disconnected from the said premises.

The Court, awarded exemplary damages of RM40,000.00 and RM30,000.00 cost against Tenaga Nasional Berhad as disapproval in the act of disconnecting the electricity supply without a lawful cause.

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We are honoured to have played a part in making a stand against unlawful and oppressive conduct against businesses. We look forward to delivering more results for our clients.