G.R. No. L-2751; June 30, 1950
ALFREDO BENITO ET AL., petitioners, vs. THE PUBLIC SERVICE COMMISSION, respondent.

FACTS

Petitioners, operating as Lealda Electric Light, Inc., owned an electric light plant in Legaspi and Tabaco, Albay. The Public Service Commission (PSC) issued instructions requiring them to: (1) stop collecting flat-rate service bills in advance; (2) revise metered service bills so the minimum charge of P6 is not added to actual consumption charges but applies only if consumption is below 15 kWh; (3) cease collecting P1 monthly meter rental; and (4) refund or credit all overcharges to customers. Petitioners moved for reconsideration, which was denied, prompting this petition for review.

ISSUE

Whether the PSC correctly issued the four instructions regarding the collection of advance payments, minimum charges, meter rentals, and refunds of overcharges.

RULING

The Supreme Court upheld all four instructions.
1. On advance collection: Sections 97 and 98 of the PSC’s Revised Order No. 1 prohibit collecting payment for service not yet rendered. The provision that bills may be paid “after rendition” is mandatory in context, and advance collection is unauthorized.
2. On minimum charges: The authorized rate schedule requires a minimum charge of P6 only if the cost of actual consumption is less than that amount. It cannot be added to the cost of consumption exceeding 15 kWh.
3. On meter rental: Collecting a monthly rental is unreasonable as meter installation is an essential part of the service, and permanent rental would yield disproportionate profit.
4. On refund of overcharges: The requirement is not a penalty but a lawful directive to return unlawfully collected amounts, with the option to refund or credit future bills.
The petition was dismissed.

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