Federal Court: TNB Cannot Disconnect Electricity Supply After Rectification of Tampered Meter

The Federal Court has on 4-1-2022 in Tenaga Nasional Berhad v Chew Thai Kay & Anor unanimously dismissed Tenaga Nasional Berhad’s (“TNB”) appeal in regards to its rights under S. 38(1) Electricity Supply Act 1990 (“ESA 1990”) to disconnect a consumer’s electricity supply after any electricity theft or meter tampering has been halted. This issue had been previously dealt by the Federal Court in Mayaria in which the apex court found that there is no reason for TNB to disconnect the electricity supply after any theft or pilferage of electricity has ceased.

TNB hinged on its argument that the position in Mayaria ought to be departed from as S. 38(1) ESA 1990 has been amended in the year 2016. Appearing for the Respondents, Lai Chee Meng and Joyce Chew Hooi Ying from CM Lai & Partners opposed TNB's arguments and contended that the amendment in S. 38(1) ESA 1990 is intended to accord more safeguards for the consumers, not to limit them. The Federal Court concurred with our submissions.

The Federal Court found that the amendment was not good reason for it to depart from its position in Mayaria; it is the legislative intent that S. 38(1) ESA 1990 was amended to further protect consumers. It follows that the amendment to S. 38(1) ESA 1990 would make it more onerous and stricter for TNB to disconnect consumer’s electricity supply. Once the impugned meter has been rectified, TNB cannot lawfully invoke S. 38(1) ESA 1990.

Further, the Federal Court added that overruling its previous decision is a serious matter. The legal system must be rooted in consistency, predictability and stability. In order for the public to have faith in the legal system, the courts must refrain from swinging between different positions and the principle of stare decisis must be respected. Therefore, the legal position remains that TNB cannot disconnect the a consumer's electricity supply after an impugned meter has been rectified and is no longer suffering continued losses.

We welcome the apex court’s decision in settling the law in regards to this question and as a positive step in safeguarding the rights of consumers.

~WH~