KUALA LUMPUR (March 13): Theta Edge Bhd (KL:THETA) said its subsidiary is taking legal action against the Energy Commission (EC) over the alleged unlawful termination of a contract for the provision of services.

The subsidiary, Theta Technologies Sdn Bhd, had signed the contract with the EC in June 2022, which was subsequently terminated by the regulator in May 2025, according to Theta Edge’s bourse filing on Friday.

Following the termination, the EC proceeded to call upon the bank guarantee provided by Theta Technologies amounting to RM428,186, the company noted.

The EC also allegedly failed to pay outstanding invoices for work done and costs incurred up to the contract’s termination, which Theta Technologies maintains it is entitled to.

In the suit, Theta Technologies is claiming for declarations that the termination and call on bank guarantee were unlawful, as well as special damages of RM8.88 million — comprising unpaid invoices and refund of the bank guarantee.

It is also seeking general and exemplary damages.

Theta Edge said it expects to recognise impairments in relation to the outstanding receivables from the project, the quantum of which is currently being assessed.

Details of the services contract were not disclosed in the filing.

One of Theta Edge’s public sector digital transformation solutions comprises the Energy Commission Management System, according to its latest annual report.

Shares in Theta Edge ended unchanged at 54.5 sen on Friday, valuing the company at RM63.71 million.