Was the damaged cable running vertically in the wall? Was there a plug or some other electrical item directly (or nearly directly) above or below the drilled hole?
If so he is definitely at fault... afaik electrical cables should always run vertically or horizontally, never diaganolly. Never drill a hole above or below a plug or switch etc.
I reckon he is at fault anyway.. as a previous poster has said, if an electrician drills through a water pipe he can't simply say 'Not my problem', it clearly is his problem. He should also have insurance for this type of thing.
This is presuming the electrical cable was installed correctly, i.e vertically. I am open to correction as I am not an electrician.
Cheers
Joe