Stiffer penalties vs. illegal water, power connections

The House of Representatives yesterday passed legislation seeking to impose fines against illegal tapping of power and water services in a move to stop the practice that has robbed the government hundreds of thousands of dollars in revenues every year.

Sponsored by Rep. Rosiky F. Camacho, chair of the Committee on Public Utilities, Transportation and Communications, the measure also calls for the Commonwealth Utilities Corporation to install metering devices on all its customers, including private well owners, in order to monitor their consumption.

The civil penalties will range from $1,000 for first offense and up to $5,000 for second violation of the proposed law under HB 12-175 or the Illegal Utility Service Penalties Act of 2000 which has drawn support from government agencies.

These fines will be more effective in curbing increasing cases of illegal connections and meter tampering than criminal sanctions, according to a report by the committee endorsing the bill.

Such unlawful practice allowing users to receive services being provided by the government-owned utility corporation without paying has resulted to “serious loss” of revenues, the report said.

“Criminal penalties [under existing laws] do not address the problem of lost revenue and have not been an effective deterrent to ‘meter tampering’ and other illegal utility connections,” the bill stated.

Funds to be generated from these fines will be used by CUC to offset the utility bills of low-income customers who are either elderly or disabled, according to the proposal.

Although the utility corporation will be mandated to draw regulations within 90 days of becoming a law, the measure will also provide amnesty against violators within the same period in order for them to evade the penalties.

The legislation followed a series of public hearings held on Saipan, Tinian and Rota as well as comments and recommendations presented to the committee by agencies and companies.

Utility officials had sought these civil penalties against illegal connections, which would be heavier than the criminal sanctions, to recover the lost earnings.

The practice, according to Executive Director Timothy P. Villagomez, has also cost CUC because of the time spent in investigating and disconnecting illegal connections.

“A civil penalty has the potential to reduce losses and costs, because people who have only faced disconnection and back billing for tampering and illegal connection will now know that the costs of their illegal activity will be higher and repeated violations will result in a significant penalty,” he told a recent hearing.

HB 12-175 now heads to the Senate for action.
Meanwhile, the lower house also cleared a bill that will create an advisory commission tasked to check local judges and justices and review complaints against them.

Offered by Rep. Malua T. Peter, the proposed independent body is long overdue to help enhance public confidence on the judiciary, said a report prepared by the Committee on Judicial and Government Operations.

Under HB 12-85, the Supreme Court Chief Justice will appoint five members to sit in the commission — three lawyers and two island residents who are U.S. citizens and are not judges or retired lawyers and judges.
It is now up for voting in the upper house.