Court orders timber firm to pay damages over electricity meter tampering

LocalBusiness & Finance
23 Mar 2026 • 6:49 PM MYT
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A SESSIONS Court in Klang has ordered a timber processing company to pay substantial damages to Tenaga Nasional Berhad after finding that its electricity meter had been tampered with, resulting in significant revenue losses.

Judge Mohd Sabri Ismail allowed the civil claim brought by the utility provider against Top Status KD Sdn Bhd, ruling that the defendant must compensate the company RM476,124.65.

In written grounds of judgment dated 18 March, the court rejected the defendant’s argument that a sharp decline in electricity usage was due to the suspension of factory operations during movement restrictions imposed in response to the COVID-19 pandemic.

The judge noted that the period in dispute began on 31 December 2019, preceding the implementation of Malaysia’s first Movement Control Order on 18 March 2020, thereby undermining the defendant’s explanation.

“The defendant failed to explain the true cause of the significant drop in electricity usage during the disputed period, namely from 31 December 2019 to 31 October 2020. The court also found that the defendant failed to demonstrate any clear error in the plaintiff’s claim.

“The defendant’s witness testimony also did not raise any doubt regarding the calculation method or the accuracy of the statements. The defendant’s evidence amounted to mere bare denial and failed to discharge the burden of proof required to rebut the plaintiff’s case,” he said.

The court further held that provisions under the Electricity Supply Act 1990 entitle the utility company to recover losses through civil proceedings once meter tampering is proven.

Evidence presented showed that during an inspection on 30 October 2020 at the defendant’s premises in Port Klang, utility personnel discovered signs of interference with the metering installation.

These included the absence of terminal seals and the presence of an additional circuit enabling remote manipulation of voltage phases via wiring connected between the current transformer coil and fuse system.

Following the discovery, Tenaga Nasional calculated losses in revenue and operational costs amounting to RM476,124.65 and subsequently sought recovery through the courts.

The defendant denied any knowledge of the tampering and maintained that the reduced electricity readings were due to a downturn in production activity during the relevant period.

However, the court found that the company had failed to substantiate its claims or rebut the plaintiff’s evidence, concluding that the losses were attributable to unlawful interference with the electricity supply system. - March 23, 2026