Update: High Court affirms Sessions Court’s decision in TNB v DSP (M) Sdn Bhd

We previously shared the Sessions Court’s decision in Tenaga Nasional Bhd v DSP (M) Sdn Bhd [2026] MLJU 891. In that case, TNB’s claim of RM383,707.05 for alleged meter tampering at the defendant’s manufacturing plant in Klang was dismissed in full.

TNB appealed. On the 16^th of October 2026, the High Court in Klang dismissed TNB’s appeal with costs of RM10,000 and agreed with the Sessions Court’s findings. Among other things, the High Court agreed that:

• TNB’s own inspection photos showed the meter operating within acceptable error margins before the transparent meter cover was opened.
• The same photos showed the wiring neat and even before the cover was opened. Afterwards, the S1 wire sat lower than the others, with copper conductor exposed.
• The expert’s simulation in court showed that current continues to flow through a connection that is not fully tightened. If that condition had existed, it would have left visible signs such as burning, charring or discolouration.
• Non-compliance with the Energy Commission’s guideline undermined the inspection. The meter was not seized, the photographic evidence was insufficient, and the missing terminal seal was not recorded.
• Weighed against the defendant’s rebuttal evidence, it was unsafe to accept TNB’s method of calculating the amount claimed.

At trial, our independent expert gave evidence under Order 40A of the Rules of Court 2012. Besides the in-court simulation, he carried out a regression analysis of the plant’s electricity consumption against its production records from 2016 to 2022. The analysis showed that the drop in consumption tracked reduced production, including during the COVID-19 restrictions, rather than meter under-registration. The Sessions Court described the analysis as “a structured and empirically supported explanation” of the factory’s energy consumption pattern. The Court noted it was grounded in contemporaneous records that were never meaningfully challenged.

Key takeaways for businesses:

• Keep your operating records: production logs, machine hours and raw material usage. They can explain changes in consumption.
• Technical findings made during an inspection can be tested, and should be.
• Independent technical evidence works best when it is grounded in objective data.

We also thank the defendant’s counsel for bringing the technical points across effectively at trial and subsequently successfully responded to TNB’s appeal.

Disclaimer: This post is for general information only.