Manila Electric Company v. Nordec Philippines And/Or Marvex Industrial Corp. Represented By Its President

Summary

This case involves a dispute between Manila Electric Company (Meralco) and Nordec Philippines over electric service disconnection and billing irregularities. Meralco discovered alleged meter tampering at Marvex Industrial Corporation's premises in 1985, assessed differential billing of P496,386.29, and later disconnected service when Nordec (Marvex's successor) failed to pay. The Supreme Court found Meralco negligent for taking four months to detect the alleged irregularities despite monthly meter readings and for failing to provide the required 48-hour written notice before disconnection. The Court emphasized that electricity distribution utilities must exercise higher diligence as public utilities and strictly comply with legal requisites before disconnection due to serious consequences on consumers. The decision awarded Nordec P5,625.00 for overbilling and P30,000.00 in nominal damages, while deleting exemplary damages and attorney's fees for failure to establish entitlement to compensatory damages. The case establishes important precedent on utility companies' duties regarding meter inspection, proper disconnection procedures, and the standard of care required of public utilities.