EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
S E N A T E
Senate Bill No. 1372
of tl)r fei'crctaip
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trrg 26 A 8 53
In tro d u ce d  by S enator Juan M iguel F. Z ubiri
AN ACT
MODERNIZING THE PUBLIC SERVICE ACT, AMENDING FOR THE PURPOSE 
COMMONWEALTH ACT NO. 146, OTHERWISE KNOWN AS THE PUBLIC
SERVICE ACT, AS AMENDED
EXPLANATORY NOTE
The current Public Service Act was enacted in 1936 to regulate the public utilities 
in order to ensure the welfare of the people. As in any law, the same is reflective of the 
exigencies then existing, and the circumstances of the times.
In the intervening 80 years, several advancements in technology have occurred. 
For instance, telecommunications drastically improved over the years since the national 
landline telephone system was pioneered in the country in 1932. Today, mobile phones 
have surpassed the usage of landline telephones and have become the most widely used 
means of communication. In fact, since the advent of mobile phone use in 1990, 
subscribers have grown from 10,000 to 115.82 million, and Filipinos are among the 
world's top online and social media users in 2019, spending an average of 10 hours and 
2 minutes on the internet everyday. Indeed, what used to be viewed as a luxurious 
communicating device for high-income earners has now become ubiquitous and part of 
every Filipino's daily life.
Similarly, evolution in the transportation systems have been seen in the country. 
Motor vehicles have already been operating in the public highways in Manila and suburbs 
since 1910. Through the years, better means of transportation were introduced, including 
cars, trucks, jeepneys. Eventually, in 1980, electric railway system began, and since then, 
there has been an exponential growth in the demand for such means of transportation.
The same is true with the development in the electric power generation and 
transmission sector. What used to be a vertically-integrated, centrally-controlled and 
managed, and wholly-owned industry by the government has been deregulated and 
opened to private players in 2001 through the enactment of the EPIRA, as a response to 
the increasing necessity of electricity in the country. Indeed, the government has 
recognized the need to institute reforms in the electric power industry, in order to adopt 
with the rapidly growing demand for what may now be considered a basic consumer 
good.
A review and revision of the law is highly necessary at this time considering the 
quantum leaps in technology the world has seen since then. Among others, the usage 
and even modes of transportation, communication technologies, and the ubiquity of what 
may have been luxuries in the past -  such as electricity and water services, have changed 
the way utilities must be viewed.


This bill therefore aims to be in tune with the times by rationalizing restrictions 
which may no longer be necessary. This Bill adopts largely adopts the version approved 
by the House of Representatives which has already been extensively deliberated on and 
studied by our colleagues at the House of Representatives as well as by the undersigned.
Among the key amendments proposed to the PSA is providing a statutory definition 
of a "public utility," which was often used interchangeably with "public service." The 
clarification in this Bill will lift foreign ownership limits, except in the cases of electricity 
distribution, electricity transmission, and water distribution. The amendment intends to 
open the country to even more foreign investment in order to benefit ordinary Filipinos 
and to make the Philippines an even stronger participant in the global community of 
nations.
The bill likewise adopts the following changes to ensure that the above goal is fully 
realized: (a) removing prior regulatory approval before incurring long term indebtedness 
and/or issuing shares of stock; (b) removing the requirement to put up a depreciation 
fund; (c) removing prior regulatory approval for encumbrance for assets which are not 
used and useful in the delivery of the required public service and limiting prior regulatory 
approval for construction or installation of assets of the same nature; (e) maintaining 
with the concerned administrative agency the discretion to adopt its own rate setting 
methodology; (f) explicitly recognizing the authority of the Philippine Competition 
Commission to regulate anti-competitive behavior; and (g) promoting the employment of 
Filipinos in these public utilities. To safeguard the interests of the people, the provisions 
on fines and penalties imposed in the Bill, if more stringent than existing penal provisions 
of special laws, shall prevail.
The bill envisions a future where public utilities can freely invest in resources to 
keep up with advancing technology. Given the capital-intensive nature of providing public 
service, public utilities must be able to have prompt and timely access to all types of 
financing options in order to better manage its resources: whether by raising additional 
equity or indebtedness, removing inefficient mandatory investments in the form of 
depreciation funds, or allowing them to manage and dispose of their assets without need 
for administrative agencies to police the intended usage. These, together with the 
administrative agency's determination to the most suitable rate-setting methodology will 
ensure that that the public is guarded against price volatility of public service. This Bill 
will aid in the delivery of modern services to households and turn common folk into a 
global Filipino.
In view of the foregoing, early passage of this bill is earnestly sought.
MIGUEL F. ZU B IR I


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
)
)
)
S E N A T E
Senate Bill No.1372
L'( !ijr Sr-a-rrnrp
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FEB26 A 8 53
recl.,
Intro d u ce d  by Senator Juan M iguel F. Z ubiri
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AN ACT
MODERNIZING THE PUBLIC SERVICE ACT, AMENDING FOR THE 
PURPOSE COMMONWEALTH ACT NO. 146, OTHERWISE KNOWN AS THE 
PUBLIC SERVICE ACT, AS AMENDED
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
SECTION. 1. Short Title. -  This Act shall be known as the "New Public 
Service Act."
SEC. 2. Declaration o f Policy -  It is the State's policy to promote a just 
and dynamic social order that will alleviate poverty through measures that 
promote an improved quality of life for all.
It is hereby recognized that public services are necessary to the public 
and must be regulated, in pursuit of consumer welfare and quality basic services. 
These policies are fulfilled by: 1) ensuring effective regulation of public services; 
2) providing reasonable rate of return to public services; 3) rationalize foreign 
equity restrictions by clearly defining the term "public utilities"; and 4) instituting 
processes for the protection of national security.
SEC. 3. Definition o f Terms. -  For the purposes of this Act, the terms 
below shall be defined as follows:
(a) Administrative Agency refers to existing agencies, as enumerated under 
Section 4 hereof, to which the powers and duties of the Public Service 
Commission were transferred;


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(b) Common Carrier refers to persons, corporations, firms or associations 
engaged in the business of carrying or transporting passengers or goods or both, 
by land, water, or air, for compensation, offering their services to the public, as 
defined by Article 1732 of Republic Act No. 386, otherwise known as the "Civil 
Code of the Philippines," as amended;
(c) Concession refers to a contract granting a private concessionaire the privilege 
to, among others, finance, construct, manage, operate and/or maintain 
concession assets;
(d) Concessionaire refers to a person, corporation, firm or association awarded a 
concession;
(e) Distribution o f Electricity refers to the conveyance of electric power by a 
distribution utility through its distribution system as defined by Section 4 (n) of 
Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform 
Act (EPIRA) of 1991";
(f) 
Philippine National refers to citizens, 
partnerships, associations, and 
corporations defined by Section 3(a) of Republic Act No. 7042, otherwise known 
as the "Foreign Investments Act of 1991," as amended;
(g) 
Telecommunications 
refers 
to 
any 
process 
which 
enables 
a 
telecommunications entity to relay and receive voice, data, electronic messages, 
written or printed matter, fixed or moving pictures, words, music or visible or 
audible signals or any control signals of any design and for any purpose by wire, 
radio or other electromagnetic, spectral, optical or technological means, as 
defined by Section 3(a) of Republic Act No. 7925, otherwise known as the "Public 
Telecommunications Policy Act of the Philippines," as amended;
(h) Transmission o f Electricity refers to the conveyance of electricity through the 
high voltage backbone system, as defined by Section 4 (ccc) of Republic Act No. 
9136, otherwise known as EPIRA;
(i) Water Pipeline Distribution Systems refer to the operation and maintenance of 
water pipeline distribution systems to ensure an uninterrupted and adequate


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supply and distribution of potable water for domestic and other purposes, as 
regulated by Republic Act No. 6234, entitled "An Act Creating the Metropolitan 
Waterworks and Sewerage System," as amended, and Presidential Decree No. 
198, otherwise known as "The Provincial Water Utilities Act of 1973," as 
amended; and
(j) Sewerage Pipeline Systems refer to the operation and maintenance of 
sewerage pipeline systems to ensure public health and safety, as regulated by 
Republic Act No. 6234, entitled "An Act Creating the Metropolitan Waterworks 
and Sewerage System," as amended, and Presidential Decree No. 198, otherwise 
known as "The Provincial Water Utilities Act of 1973," as amended.
SEC. 4. Recognition o f Transfer o f Jurisdiction to Various Administrative 
Agencies. -  All references to the Public Service Commission in Commonwealth 
Act No. 146, as amended, shall pertain to any Administrative Agency to which 
the powers and duties of the Public Service Commission were transferred, such 
as but not limited to:
a. Civil Aeronautics Board (CAB);
b. Civil Aviation Authority of the Philippines (CAAP);
c. Department of Energy (DOE);
d. Department of Environment and Natural Resources (DENR);
e. Department of Information and Communications Technology (DICT);
f. 
Department of Transportation (DOTr);
g. Energy Regulatory Commission (ERC);
h. Land Transportation Franchising Regulatory Board (LTFRB);
i. 
Land Transportation Office (LTO);
j. 
Local Water Utilities Administration (LWUA);
k. Maritime Industry Authority (MARINA);
l. 
Metropolitan Waterworks and Sewerage System (MWSS);
m. National Telecommunications Commission (NTC);
n. National Water Resources Board (NWRB);
0. Philippine Ports Authority (PPA); and
p. Toll Regulatory Board (TRB).


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SEC. 5. Section 13 of Commonwealth Act No. 146, as amended, is hereby 
further amended to read as follows:
"SEC. 13. 
(a) 
The [Commission] ADMINISTRATIVE AGENCY shall have
jurisdiction, supervision, and control over all public services and their franchises, 
equipment, and other properties, and in the exercise of its authority, it shall have 
the necessary powers and the aid of public force: Provided, That public services 
owned or operated by government entities or government-owned or controlled 
corporations shall be regulated by the [Commission] ADMINISTRATIVE 
AGENCY in the same way as privately-owned public services, [but certificates of 
public convenience or certificates of public convenience and necessity shall not 
be required of such entities or corporations.” And provided, further. That it shall 
have no authority to require steamboats, motorships and steamship lines, 
whether privately-owned, or owned or operated by any government controlled 
corporation or instrumentality to obtain certificate of public convenience or to 
prescribe their definite routes or lines of service] Provided, fu rth e r. T hat the 
re quire m en t o f a franchise, certifica te , concession, o r any o th e r 
appropriate fo rm  o f a u tho rization fo r the operation o f a public service 
SHALL APPLY in case th e  cha rter or enabling law  o f a public service 
ow ned or operated by a governm ent e n tity  or governm ent ow ned or 
controlled operation does no t e xp licitly REQUIRE THE SAME.
"(b) The term 'public service' includes every person that now or hereafter may 
own, operate, manage, or control in the Philippines for hire or compensation, 
with general or limited clientele, whether permanent, occasional or accidental, 
and done for general use business purposes, services w hich are non- 
rivalrous or im bued w ith  public interest, such as x x x marine repair shop, 
wharf or dock, [ice plant, ice refrigeration plant,] canal, PUBLIC MARKET, 
irrigation system, gas, electric light, heat and power, water supply and power, 
petroleum, sewerage system, TELECOMMUNICATIONS SYSTEM, wire or 
wireless communications system, x x x.
"x X 
X
"(d ) (1 ) A PUBLIC SERVICE THAT MEETS ALL OF THE FOLLOWING 
CRITERIA IS  DEEMED A PUBLIC UTILITY:


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(a ) 
THE 
PERSON 
REGULARLY 
SUPPLIES, 
TRANSMITS 
AND 
DISTRIBUTES 
TO THE 
PUBLIC THROUGH 
A 
NETWORK A 
COMMODITY OR SERVICE OF PUBLIC CONSEQUENCE;
(b ) 
THE PUBLIC SERVICE IS A NATURAL MONOPOLY THAT NEEDS 
TO BE REGULATED. FOR THIS PURPOSE, NATURAL MONOPOLY 
EXISTS WHEN THE MARKET DEMAND FOR A COMMODITY OR 
SERVICE CAN BE SUPPLIED BY A SINGLE ENTITY AT A LOWER 
COST THAN BY TWO OR MORE ENTITIES;
(c) 
THE 
COMMODITY 
OR 
SERVICE 
IS  
NECESSARY 
FOR THE 
MAINTENANCE OF LIFE AND OCCUPATION OF THE PUBLIC; AND
(d ) 
THE PERSON IS  OBLIGATED TO PROVIDE ADEQUATE SERVICE 
TO THE PUBLIC ON DEMAND.
(2 ) AN ENTITY THAT OPERATES, MANAGES OR CONTROLS FOR PUBLIC 
USE ANY OF THE FOLLOWING SYSTEMS IS  A PUBLIC UTILITY:
(a) 
DISTRIBUTION OF ELECTRICITY;
(b ) 
TRANSMISSION OF ELECTRICITY;
(c) 
WATER PIPELINE DISTRIBUTION; AND
(d ) 
SEWERAGE PIPELINE.
A 
CONCESSIONAIRE 
GRANTED 
A 
CONCESSION 
BY 
A 
GOVERNMENT AGENCY ENGAGED IN  PUBLIC UTILITY OPERATIONS 
SHALL BE DEEMED A PUBLIC UTILITY FOR THE PURPOSES OF THIS 
ACT.
(3 ) IN  ADDITIO N TO SEC. (d )(1 ) AND (2 ) ABOVE, THE NATIONAL 
ECONOMIC 
AND 
DEVELOPMENT 
AUTHORITY 
(NEDA), 
IN  
CONSULTATION W ITH THE PHILIPPINE COMPETITION COMMISSION 
(PCC), SHALL RECOMMEND TO CONGRESS THE CLASSIFICATION OF A 
PUBLIC SERVICE AS A PUBLIC UTILITY PROVIDED SUCH PUBLIC


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SERVICE IS  ABLE TO MEET ALL CRITERIA ENUMMERATED IN  SEC. 13 
(d )(1 ) OF THIS ACT.
NO OTHER PERSON SHALL BE DEEMED A PUBLIC UTILITY UNDER 
SEC. 
13(d) 
OF THIS ACT, 
UNLESS 
OTHERWISE 
SUBSEQUENTLY 
PROVIDED BY LAW ."
SEC. 6. Section 14 of Commonwealth Act No. 146, as amended, is hereby 
amended to read as follows:
"SEC. 14. (1) The following are exempted from the provisions of [the preceding 
section] SECTIONS 13 (A), (B ) AND (C) OF TH IS ACT:
(a) Warehouses;
(b) Vehicles drawn by animals and bancas moved by oar or sail, and 
tugboats and lighters[.];
(c) Airships within the Philippines except as regards the fixing of their 
maximum rates on freight and passengers;
(d) Radio companies except with respect to the fixing of rates;
(e) Public services owned or operated by any instrumentality of the National 
Government or by any government-owned or controlled corporation, 
except with respect to the fixing of rates.
"(2 ) IN  THE INTEREST OF NATIONAL SECURITY, THE PRESIDENT, 
AFTER 
REVIEW, 
EVALUATION 
AND 
RECOMMENDATION 
OF 
THE 
RELEVANT GOVERNMENT DEPARTMENT OR ADMINISTRATIVE AGENCY, 
MAY 
SUSPEND 
OR 
PROHIBIT 
ANY 
PROPOSED 
MERGER 
OR 
ACQUISITION TRANSACTION, OR ANY INVESTMENT IN  A PUBLIC 
SERVICE THAT EFFECTIVELY RESULTS IN  THE GRANT OF CONTROL, 
WHETHER DIRECT OR INDIRECT, TO A FOREIGNER OR A FOREIGN 
CORPORATION.
THE 
PHILIPPINE 
COMPETITION 
COMMISSION 
SHALL 
BE 
CONSULTED 
ON 
ALL 
MATTERS 
RELATING 
TO 
MERGERS 
AND 
ACQUISITIONS.


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THE NEDA SHALL PROMULGATE RULES AND REGULATIONS TO 
IMPLEMENT THE PROVISIONS OF THIS SECTION.
SEC. 7. Section 15 of Commonwealth Act No. 146, as amended, is hereby 
amended to read as follows:
"SEC. 15. 
With the exception of those enumerated in SECTION 14(1) 
[preceding section], no public service shall operate in the Philippines without 
possessing a valid and subsisting FRANCHISE, certificate, CONCESSION, OR 
ANY OTHER APPROPRIATE FORM OF AUTHORIZATION 
FOR THE 
OPERATION OF A PUBLIC SERVICE, [from the Public Service Commission 
known as "certificate of public convenience," or "certificate of public convenience 
and 
necessity,"] 
FROM 
CONGRESS, 
AND/O R 
THE 
PROPER 
ADM INISTRATIVE AGENCY, as the case may be, to the effect that the 
operation of said service and the authorization to do business will promote the 
public interest in a proper and suitable manner.
"The [Commission] ADMINISTRATIVE AGENCY may prescribe as a condition 
for the issuance of the FRANCHISE, certificate, CONCESSION, OR ANY 
OTHER 
APPROPRIATE 
FORM 
OF 
AUTHORIZATION 
FOR 
THE 
OPERATION OF A PUBLIC SERVICE provided in the preceding paragraph that 
the service can be acquired by the [Commonwealth] Republic of the Philippines 
or by any instrumentality thereof, upon payment of the cost price of its 
CAPITAL STOCK, useful equipment, INFRASTRUCTURE, OR PROPERTY, 
less reasonable depreciation; and likewise, that the FRANCHISE, certificate, 
CONCESSION, 
OR 
ANY 
OTHER 
APPROPRIATE 
FORM 
OF 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE shall be 
valid only for a definite period of time; and that the violation of any of these 
conditions shall produce the immediate cancellation of the FRANCHISE, 
certificate, CONCESSION, OR ANY OTHER APPROPRIATE FORM OF 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE without 
the necessity of any express action on the part of the [Commission] 
ADM INISTRATIVE AGENCY.
UNLESS 
OTHERWISE 
PROVIDED 
BY 
LAW, 
OR 
BY 
ANY 
INTERNATIONAL AGREEMENT, A PUBLIC SERVICE SHALL EMPLOY A 
FOREIGN NATIONAL ONLY AFTER THE DETERMINATION OF NON-


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AVAILABILITY OF A PHILIPPINE NATIONAL WHO IS  COMPETENT, ABLE 
AND W ILLIN G  TO PERFORM THE SERVICES FOR W HICH THE FOREIGN 
NATIONAL IS DESIRED; PROVIDED, THAT IN  NO CASE SHALL THE 
EMPLOYED FOREIGN NATIONALS COMPRISE MORE THAN TWENTY 
FIVE PERCENT (2 5 % ) OF THE TOTAL EMPLOYEES OF THE PUBLIC 
SERVICE.
ANY 
FOREIGN 
NATIONAL 
SEEKING 
ADMISSION 
TO 
THE 
PHILIPPINES FOR EMPLOYMENT PURPOSES AND ANY PUBLIC SERVICE 
W HICH DESIRES TO ENGAGE A FOREIGN NATIONAL FOR EMPLOYMENT 
IN  
THE 
PHILIPPINES 
MUST OBTAIN 
AN 
EMPLOYMENT 
PERMIT 
PURSUANT TO P.D. NO. 442, OTHERWISE KNOWN AS THE LABOR CODE 
OF THE PHILIPPINES, AS AMENDED.
NO FOREIGN NATIONAL SHALL BE ALLOWED TO OWN CAPITAL 
STOCK OF ANY PUBLIC SERVICE CLASSIFIED AS A PUBLIC UTILITY 
PRIOR TO THIS ACT, UNLESS THE COUNTRY OF SUCH FOREIGN 
NATIONAL 
ACCORDS 
RECIPROCAL 
RIGHTS 
TO 
PHILIPPINE 
NATIONALS AS MAY BE PROVIDED BY FOREIGN LAW, TREATY OR 
INTERNATIONAL AGREEMENT. RECIPROCITY MAY BE SATISFIED BY 
ACCORDING 
RIGHTS OF SIM ILAR  VALUE IN  
OTHER ECONOMIC 
SECTORS.
"X X X."
SEC. 8. Section 16 of Commonwealth Act No. 146, as amended, are 
hereby amended to read as follows:
"SEC. 16. Proceedings o f the [Commission] AD M IN ISTR ATIVE AGENCY, upon 
notice and hearing. -  The [Commission] ADMINISTRATIVE AGENCY shall 
have power, upon proper notice and hearing in accordance with the rules and 
provisions of this Act, subject to the limitations and exceptions mentioned and 
saving provisions to the contrary:
"(a) To issue FRANCHISES, certificates, CONCESSION, OR ANY 
OTHER 
APPROPRIATE 
FORM 
OF 
AUTHORIZATION 
FOR 
THE 
OPERATION OF A PUBLIC SERVICE [which shall be known as Certificates of 
Public Convenience,] authorizing the operation of public services within the 
Philippines whenever the [Commission] ADMINISTRATIVE AGENCY finds that


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the operation of the public service proposed and the authorization to do business
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will promote the public interest in proper and suitable manner: [Provided, That
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hereafter, 
certificates 
of 
public 
convenience 
and 
certificates 
of 
public
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convenience and necessity will be granted only to citizens of the Philippines or of
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the United States or to corporations, co-partnerships, associations or joint-stock
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companies constituted and organized under the laws of the Philippines: Provided,
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That sixty per centum of the stock or paid-up capital of any such corporation, co-
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partnership, association or joint-stock company must belong entirely to citizens
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of the Philippines or of the United States: Provided, further. That no such
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certificates shall be issued for a period of more than fifty years.]
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(b) To approve, subject to constitutional limitations any franchise or
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privilege granted [under the provisions of Act No. Six Hundred and Sixty-seven,
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as amended by Act No. One Thousand and twenty-two], by any political
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subdivision of the Philippines when, in the judgment of the [Commission]
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ADM INISTRATIVE AGENCY, such franchise or privilege will properly conserve
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the public interests, and the [Commission] ADMINISTRATIVE AGENCY shall in
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so 
approving 
impose 
such 
conditions 
as 
to 
construction, 
equipment,
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maintenance, service, or operation as the public interests and convenience may
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reasonably 
require, 
and 
to 
issue 
FRANCHISE, 
certificates, 
[of 
public
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convenience and necessity] CONCESSION, OR ANY OTHER APPROPRIATE
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FORM OF AUTHORIZATION 
FOR 
THE OPERATION OF A PUBLIC
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SERVICE when such is required or provided by any law or franchise.
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"(c) To fix and determine individual or joint rates, tolls, charges,
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classifications, 
or schedules thereof, 
as well 
as commutation, mileage,
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kilometrage, and other special rates which shall be imposed, observed, and
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followed thereafter by any public service WHEN THE PUBLIC INTEREST SO
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REQUIRES: Provided, That the [Commission] ADM INISTRATIVE AGENCY
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may, in its discretion, approve rates proposed by public services provisionally and
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without necessity of any hearing; but it shall call a hearing thereon within [thirty]
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FIFTEEN (1 5 ) days, thereafter, upon publication and notice to the [concerns
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operating] AFFECTED PARTIES W ITHin the territory affected: 
Provided,
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further. That in case the public service equipment of an operator is used
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principally or secondarily for the promotion of a private business, the net profits
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of said private business shall be considered in relation with the public service of
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such operator for the purpose of fixing the rates[;]: 
PROVIDED, FINALLY,
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THAT WHEN THE PUBLIC INTEREST REQUIRES, THE ADMINISTRATIVE


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AGENCY MAY ESTABLISH AND 
ENFORCE A METHODOLOGY FOR
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SETTING 
RATES, 
TAKING 
INTO 
ACCOUNT 
ALL 
RELEVANT
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CONSIDERATIONS, INCLUDING THE EFFICIENCY OF THE REGULATED
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PUBLIC SERVICE. THE RATES MUST BE SUCH AS TO ALLOW THE
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RECOVERY OF PRUDENT AND EFFICIENT COSTS AND A REASONABLE
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RATE OF RETURN TO ENABLE THE PUBLIC SERVICE TO OPERATE
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VIABLY AND EFFICIENTLY. THE ADMINISTRATIVE AGENCY MAY ADOPT
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ALTERNATIVE 
FORMS 
CONSISTENT 
W ITH 
INTERNATIONALLY
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ACCEPTED RATE-SETTING METHODOLOGY. 
THE ADOPTED RATE-
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SETTING METHODOLOGY SHALL ENSURE A REASONABLE PRICE OF
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THE COMMODITY OR SERVICE AND THAT THE RATES PRESCRIBED
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SHALL NOT BE DISCRIMINATORY.
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"THIS PROVISION SHALL NOT BE INTERPRETED AS MANDATING
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RATE 
REGULATION 
NOR 
AMENDING 
OR 
REPEALING 
(1 ) 
LAWS
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PROVIDING A DEREGULATION POLICY, SUCH AS R.A. NO. 7925,
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OTHERWISE KNOWN AS THE "PUBLIC TELECOMMUNICATIONS POLICY
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ACT," R.A. NO. 8479, OTHERWISE KNOWN AS THE "DOWNSTREAM O IL
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INDUSTRY DEREGULATION ACT," R.A. NO. 9136, OTHERWISE KNOWN
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AS THE EPIRA LAW AND R.A. NO. 9295, OTHERWISE KNOWN AS THE
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"DOMESTIC 
SHIPPING 
DEVELOPMENT 
ACT 
OF 
2004," 
AND 
(2 )
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REGULATIONS PROMULGATED BY THESE ADMINISTRATIVE AGENCIES
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TO DEREGULATE RATES.
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"xxx
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(h) To require any public service to establish, construct, maintain, and
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operate any reasonable extension of its existing facilities, where, in the judgment
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of said 
[Commission] 
ADMINISTRATIVE 
AGENCY, 
such 
extension 
is
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reasonable and practicable and will furnish sufficient business to justify the
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construction and maintenance of the same, and when the financial condition of
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the said public service reasonably warrants the original expenditure required in
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making and operating such extension.
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(i) To direct any railroad, street railway or traction company to establish and
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maintain at any junction or point of connection or intersection with any other line
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of said road or track, or with any other line of any other railroad, street railway
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or traction company, such [just and reasonable] PRUDENT AND EFFICIENT
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connection as shall be necessary to promote the convenience of shippers of
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property, or of passengers, and in like manner to direct any railroad, street
10


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railway, or traction company engaged in carrying merchandise, to construct,
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maintain and operate, upon reasonable terms, a switch connection with any
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private sidetrack which may be constructed by any shipper to connect with the
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railroad, street railway or traction company line where, in the judgment of the
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[Commission] ADM INISTRATIVE AGENCY, such connection is reasonable and
6 
practicable, and can be put in with safety, and will furnish sufficient business to
7 
justify the construction and maintenance of the same.
8 
"x X X
9 
(k) To direct any railroad or street railway company to install such safety
10 
devices or adopt such other reasonable measures as may in the judgment of the
11 
[Commission] ADM INISTRATIVE AGENCY be necessary for the protection of
12 
the public at passing grade crossings of (1) public highways and railroads, (2)
13 
public highways and street railways, or (3) railroads and street railways.
14 
(I) To fix and determine proper and adequate rates of depreciation of the
15 
property of any public service [which will be observed in a proper and adequate
16 
depreciation 
account to 
be carried for the 
protection of stockholders,
17 
bondholders or creditors] in accordance with such rules, regulations, and forms
18 
of accounts as the [Commission] ADMINISTRATIVE AGENCY may prescribe.
19 
Said rates shall be sufficient to provide the amounts required over and above the
20 
expense of maintenance to keep such property in a state of efficiency
21 
corresponding to the progress of the industry. [Each public service shall conform
22 
its depreciation accounts to the rates so determined and fixed, and shall set
23 
aside the moneys so provided for out of its earnings and carry the same in a
24 
depreciation fund. The income from investments of money in such fund shall
25 
likewise be carried in such fund. This fund shall not be expended otherwise than
26 
for depreciation, improvements, new construction, extensions or conditions to
27 
the properly of such public service.]"
28 
"x X X
29 
(n) To suspend or revoke any FRANCHISE, certificate, CONCESSION, OR
30 
ANY OTHER APPROPRIATE FORM OF AUTHORIZATION 
FOR THE
31 
OPERATION OF A PUBLIC SERVICE issued under the provisions of this Act
32 
whenever the holder thereof has violated or willfully and contumaciously refused
33 
to 
comply 
with 
any 
order, 
rule 
or 
regulation 
of 
the 
[Commission]
34 
ADMINISTRATIVE AGENCY or any provision of this Act: Provided, That the
35 
[Commission] ADMINISTRATIVE AGENCY for good cause, may prior to the
36 
hearing suspend for a period not to exceed thirty days any FRANCHISE,


1 
certificate, CONCESSION, OR ANY OTHER APPROPRIATE FORM OF
2 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE, or the
3 
exercise of any right or authority issued or granted under this Act by order of the
4 
[Commission] ADMINISTRATIVE AGENCY, whenever such step shall in the
5 
judgment of the [Commission] ADMINISTRATIVE AGENCY be necessary to
6 
avoid serious and irreparable damage or inconvenience to the public or to private
7 
interests.
8 
"x X X
9
10 
SEC. 9. 
Section 17 (b) of Commonwealth Act No. 146, as amended, is
11 
hereby amended to read as follows:
12 
"SEC. 17. Proceedings o f [Commission] AD M IN ISTR ATIVE AGENCY without
13 
previous hearing. -  The [Commission] ADMINISTRATIVE AGENCY shall have
14 
power without previous hearing, subject to established limitations and exceptions
15 
and saving provisions to the contrary:
16 
(a) To investigate, upon its own initiative, or upon complaint in writing, any
17 
matter concerning any public service as regards matters under its jurisdiction; to
18 
require any public service to furnish safe, adequate, and proper service as the
19 
public interest may require and warrant; to enforce compliance with any
20 
standard, rule, regulation, order or other requirement of this Act or of the
21 
[Commission] ADMINISTRATIVE AGENCY, and to prohibit or prevent any
22 
public service as herein defined from operating without having first secured a
23 
[certificate of public convenience or public 
necessity and convenience]
24 
FRANCHISE, 
CERTIFICATE, 
CONCESSION, 
OR 
ANY 
FORM OF
25 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE, as the
26 
case may be, and require existing public services to pay the fees provided for in
27 
this Act for the issuance of the [proper certificate of public convenience or
28 
certificate of public necessity and convenience] FRANCHISE, CERTIFICATE,
29 
CONCESSION, 
OR 
ANY 
FORM 
OF 
AUTHORIZATION 
FOR 
THE
30 
OPERATION OF A PUBLIC SERVICE, as the case may be, under the penalty,
31 
in the discretion of the [Commission] ADMINISTRATIVE AGENCY, of the
32 
revocation and cancellation of any acquired right.
33 
(b) To require any public service to pay the actual expenses incurred by the
34 
[Commission] ADMINISTRATIVE AGENCY in any investigation if it shall be
35 
found in the same that any rate, toll, charge, schedule, regulation, practice, act
36 
or service thereof is in violation of any provision of this Act or of any
12


1 
FRANCHISE, certificate, CONCESSION, OR ANY OTHER APPROPRIATE
2 
FORM OF AUTHORIZATION 
FOR THE OPERATION OF A PUBLIC
3 
SERVICE, order, rule, regulation or requirement issued or established by the
4 
[Commission] 
ADMINISTRATIVE 
AGENCY. 
The 
[Commission]
5 
ADM INISTRATIVE AGENCY may also assess against any public service
6 
REASONABLE costs [not to exceed twenty-five pesos] with reference to such
7 
investigation.
8 
(c) From time to time appraise and value the property of any public service,
9 
whenever in the judgment of the [Commission] ADMINISTRATIVE AGENCY it
10 
shall be necessary so to do so, for the purpose of carrying out any of the
11 
provisions of this Act, and in making such valuation the [Commission]
12 
ADM INISTRATIVE AGENCY may have access to and use any books,
13 
documents, or records in the possession of any department, bureau, office, or
14 
board of the Government of the Philippines or any political subdivision thereof.
15 
(d) To provide, on motion by or at the request of any consumer or user of a
16 
public service, for the examination and test of any appliance used for the
17 
measuring of any product or service of a public service, and for that purpose, by
18 
its agents, experts, or examiners to enter upon any premises where said
19 
appliances may be, and other premises of the public service, for the purpose of
20 
setting up and using on said premises any apparatus necessary therefor, and to
21 
fix the fees to be paid by any consumer or user who may apply to the
22 
[Commission] ADM INISTRATIVE AGENCY for such examination or test to be
23 
made, and if the appliance be found defective or incorrect to the disadvantage of
24 
the consumer or user, to require the fees paid to be refunded to the consumer or
25 
user by the public service concerned.
26 
(e) To permit any street railway or traction company to change its existing gauge
27 
to standard steam railroad gauge, upon such terms and conditions as the
28 
[Commission] ADM INISTRATIVE AGENCY shall prescribe.
29 
(f) To grant to any public service special permits to make extra or special trips
30 
within 
the territory 
covered 
by 
its 
[certificate 
of public 
convenience]
31 
FRANCHISE, 
CERTIFICATE, 
CONCESSION, 
OR 
ANY 
FORM 
OF
32 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE, and to
33 
make special excursion trips outside of its own territory if its own territory if the
34 
public interest or special circumstances require it: Provided, however, That in
35 
case a public service cannot render such extra service on its own line or in its
13


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
1
own territory, a special permit for such extra service may be granted to any 
other public service.
(g) To require any public service to keep its books, records, and accounts so as 
to afford an intelligent understanding of the conduct of its business and to that 
end to require every such public service of the same class to adopt a uniform 
system of accounting. Such system shall conform to any system approved and 
confirmed by the [Auditor-General] COMMISSION ON AUDIT.
"x X x"
SEC. 10. Section 18 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 18. It shall be unlawful for any individual, [cojpartnership, association, 
corporation or joint-stock company, their lessees, trustees, or receivers 
appointed by any court whatsoever, or any municipality, province, or other 
department of the Government of the Philippines, to engage in any public service 
business 
without 
having 
first 
secured 
from 
the 
[Commission]
ADM INISTRATIVE AGENCY a [certificate of public convenience or certificate 
of 
public 
convenience 
and 
necessity] 
FRANCHISE, 
CERTIFICATE, 
CONCESSION, 
OR 
ANY 
FORM 
OF 
AUTHORIZATION 
FOR 
THE 
OPERATION OF A PUBLIC SERVICE as provided for in this Act, except 
grantees of legislative franchises expressly exempting such grantee from the 
requirement 
of 
securing 
a 
certificate 
from 
this 
[Commission]
ADMINISTRATIVE AGENCY, as well as concerns at present existing expressly 
exempted from the jurisdiction of the [Commission] ADMINISTRATIVE 
AGENCY, either totally or in part, by the provisions of section thirteen of this 
Act."
SEC. 11. Section 19 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 19. Unlawful acts. -  It shall be unlawful for any public service:
31 (a)"To provide or maintain any service that is unsafe, improper, or inadequate, or
32 
withhold or refuse any service which can reasonably be demanded and
33 
furnished, as found and determined by the [Commission] ADM INISTRATIVE
34 
AGENCY in a final order which shall be conclusive and shall take effect in
35 
accordance with this Act, upon appeal or otherwise.
14


1 (b)To make or give, directly or indirectly, by itself or through its agents attorneys
2 
or brokers, or any of them, discounts or rebates on authorized rates, or grant
3 
credit for the payment of freight charges, or any undue or unreasonable
4 
preference or advantage to any person or corporation or to any locality or to
5 
any particular description of traffic or service, or subject any particular person
6 
or corporation or locality or any particular description of traffic to any prejudice
7 
or disadvantage in any respect whatsoever; to adopt, maintain, or enforce any
8 
regulation, practice or measurement which shall be found or determined by the
9 
[Commission] ADMINISTRATIVE AGENCY to be unjust, unreasonable,
10 
unduly preferential or unjustly discriminatory, in a final order which shall be
11 
conclusive and shall take effect in accordance with the provisions of this Act,
12 
upon appeal or otherwise.
13 (c)To refuse or neglect, when requested by the [Director of Posts] POSTMASTER
14 
GENERAL or his authorized representative, to carry public mail on the regular 
trips of any public land transportation service maintained or operated by any 
such public service, upon such terms and conditions and for a consideration in 
such amounts as may be agreed upon between the [Director of Posts] 
POSTMASTER GENERAL 
and the public service carrier of fixed by the 
[Commission] ADMINISTRATIVE AGENCY in the absence of an agreement 
between the [Director of Posts] POSTMASTER GENERAL and the carrier. In 
case the [Director of Posts] POSTMASTER GENERAL and the public service 
carrier are unable to agree on the amount of the compensation to be paid for 
the carriage of the mail, the [Director of Posts] POSTMASTER GENERAL shall 
forthwith request the [Commission] ADMINISTRATIVE AGENCY to fix a [just 
and reasonable] PRUDENT AND EFFICIENT compensation for such carriage 
and the same shall be promptly fixed by the [Commission] ADMINISTRATIVE 
AGENCY in accordance with section sixteen (1 6 ) of this Act.
"(D ) 
TO 
REFUSE 
OR 
NEGLECT, 
WHEN 
REQUESTED 
BY 
THE 
ADMINISTRATIVE AGENCY TO URGENTLY USE, DELIVER OR RENDER 
THE PUBLIC SERVICE FOR THE PURPOSE OF AVOIDING FURTHER LOSS 
ON HUMAN, MATERIAL, ECONOMIC, OR ENVIRONMENT DURING A 
STATE OF CALAMITY."
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
SEC. 12. Section 20 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
15


1 
"SEC. 20. Acts requiring the approvai o f the [Commission] ADM INISTRA TIVE
2 
AGENCY. -  Subject to established limitations and exceptions and saving
3 
provisions to the contrary, it shall be unlawful for any public service or for the
4 
owner, lessee or operator thereof, without the approval and authorization of the
5 
[Commission] ADMINISTRATIVE AGENCY previously had-
6 
"(a) To adopt, establish, fix, impose, maintain, or collect or carry into effect any
7 
individual or joint rates, commutation, mileage or other special rate, toll, fare,
8 
charge, 
classification or itinerary. The 
[Commission] 
ADMINISTRATIVE
9 
AGENCY shall approve only those that are [just and reasonable] PRUDENT
10 
AND EFFICIENT and not any that are unjustly discriminatory or unduly
11 
preferential, only upon reasonable notice to the public services and other parties
12 
concerned, giving them a reasonable opportunity to be heard, and the burden of
13 
the proof to show that the proposed rates or regulation are [just and reasonable]
14 
PRUDENT AND EFFICIENT shall be upon the public service proposing the
15 
same.
16 
"(b) To establish, construct, maintain, or operate new units or extend existing
17 
facilities or make any other addition to or general extension of the service[;]:
18 
PROVIDED, THAT SAID APPROVAL SHALL ONLY BE REQUIRED FOR
19 
ASSETS USED, USEFUL, AND EFFICIENT IN  THE DELIVERY OF PUBLIC
20 
SERVICE. 
THE 
ADMINISTRATIVE 
AGENCY 
MUST 
COMMENCE
21 
PROCEEDINGS ON THE PUBLIC UTILITY'S APPLICATION W ITH IN
22 
SIXTY (6 0 ) CALENDAR 
DAYS 
FROM 
ITS 
FILING  OF COMPLETE
23 
DOCUMENTS, SUBJECT TO THE RATE-SETTING METHODOLOGY OF
24 
SUCH ADMINISTRATIVE AGENCY. THE ADMINISTRATIVE AGENCY
25 
SHALL DECIDE ON THE APPLICATION W ITH IN  ONE (1 ) YEAR FROM
26 
FILING OF COMPLETE DOCUMENTS. FAILURE TO DECIDE W ITH IN  THE
27 
SAID PERIOD SHALL DEEM THE APPLICATION APPROVED.
28 
FOR APPLICATIONS W ITH COMPLETE DOCUMENTATION PENDING
29 
W ITH 
THE ADMINISTRATIVE 
AGENCY 
AT 
THE 
TIME 
OF 
THE
30 
EFFECTIVITY OF THIS ACT, THE ADMINISTRATIVE AGENCY SHALL
31 
DECIDE 
ON 
SUCH 
APPLICATIONS 
W ITH IN  
SIX 
(6 ) 
MONTHS
32 
FROM THE EFFECTIVITY OF THIS ACT. FAILURE TO DECIDE W ITH IN
33 
THE SAID PERIOD SHALL DEEM THE APPLICATION APPROVED.
34 
"THE 
ADMINISTRATIVE 
AGENCY 
MAY 
ISSUE 
REGULATIONS
35 
PRECRIBING A SHORTER PERIOD THAN THAT PROVIDED IN  THE
36 
PRECEEDING PARAGRAPHS ONLY IN  CASES OF EMERGENCY, AS MAY
16


1 
BE CERTIFIED BY SUCH ADMINISTRATIVE AGENCY, REQUIRING THE
2 
INSTALLATION, 
CONSTRUCTION 
OR 
MAINTENANCE 
OF 
UNITS,
3 
FACILITIES OR EQUIPMENT.
4 
"x X X
5 
"(e) [Hereafter to issue any stock or stock certificates representing an increase
6 
of capital; or] TO issue any share of stock without par value[; or issue any bonds
7 
or other evidence of indebtedness payable in more than one year from the date
8 
of issuance thereof,]: Provided, That it shall be the duty of the [Commission]
9 
ADMINISTRATIVE AGENCY, after hearing, to approve any such issue
10 
[maturing in more than one year from the date thereof,] when satisfied that the
11 
same is to be made in accordance with law [, and the purpose of such issue be
12 
approved by the Commission].
13 
"(f) To capitalize any franchise in excess of the amount, inclusive of any tax or
14 
annual charge, actually paid to the Government of the Philippines or any political
15 
subdivision thereof as the consideration of said franchise; capitalize any contract
16 
for consolidation, merger, or lease, or issue any bonds or other evidence of
17 
indebtedness against or as a lien upon any contract for consolidation, merger, or
18 
lease: Provided, however, That the provisions of this section shall not prevent
19 
the issuance of stock, bonds, or other evidence of indebtedness subject to the
20 
approval of the [Commission] ADMINISTRATIVE AGENCY by any lawfully
21 
merged or consolidated public services not in contravention of the provisions of
22 
this section.
23 
"(g) To sell, alienate, mortgage, encumber or lease its property, franchises,
24 
certificates, privileges, or rights or any part thereof; or merge or consolidate its
25 
property, franchises privileges or rights, or any part thereof, with those of any
26 
other public service. The approval herein required shall be given, after notice to
27 
the public and hearing the persons interested at a public hearing, if it be shown
28 
that there are just and reasonable grounds for making the mortgage or
29 
encumbrance, for liabilities of more than one year maturity, or the sale,
30 
alienation, lease, merger, or consolidation to be approved, and that the same are
31 
not detrimental to the public interest, and in case of a sale, the date on which
32 
the same is to be consummated shall be fixed in the order of approval: Provided,
33 
however, That nothing herein contained shall be construed to prevent the
34 
transaction from being negotiated or completed before its approval or to prevent
35 
the sale, alienation, or lease by any public service of any of its property in the
36 
ordinary course of its business[.]: PROVIDED, FURTHER, THAT THE NEED
17


1 
FOR 
APPROVAL 
OF 
THE 
SALE, 
ALIENATION, 
MORTGAGE,
2 
ENCUMBRANCE OR LEASE W ILL BE REQUIRED ONLY FOR PROPERTIES
3 
OF THE PUBLIC SERVICE THAT ARE USED AND USEFUL IN  THE
4 
DELIVERY OF THE REQUIRED PUBLIC SERVICE."
5 
"x X X
6 
"(i) To sell, alienate or in any manner transfer shares of its capital stock to any
7 
alien if the result of that sale, alienation, or transfer in itself or in connection with
8 
another previous sale shall be the reduction to less than sixty (6 0 ) per cent[um]
9 
of the capital stock belonging to Philippine [citizens] NATIONALS IN  THE
10 
OPERATION 
OF 
A 
PUBLIC 
UTILITY 
AS 
REQUIRED 
BY 
THE
11 
CONSTITUTION. Such sale, alienation or transfer shall be void and of no effect
12 
and shall be sufficient cause for ordering the cancellation of the certificate.
13 
"XX x"
14
15 
SEC. 13. Section 21 of Commonwealth Act No. 146, as amended, is
16 
hereby amended to read as follows;
17 
"SEC. 21. IN  THE ABSENCE OF ANY SPECIFIC FINE OR PENALTY,
18 
IMPOSED UNDER THE CHARTER OF THE ADMINISTRATIVE AGENCY OR
19 
THE SPECIAL LAWS GOVERNING THE PARTICULAR PUBLIC SERVICE,
20 
EVERY [Every] public service violating or failing to comply with the terms and
21 
conditions of any certificate or any order[s], decision[s] or regulation[s] of the
22 
[Commission] ADM INISTRATIVE AGENCY shall be subject to a fine OF NOT
23 
LOWER THAN 
FIVE THOUSAND 
PESOS 
(PH P5,000.00) 
BUT NOT
24 
EXCEEDING TWO M ILLIO N  PESOS (PH P2,000,000.00) [of not exceeding
25 
two hundred pesos] per day for every day during which such default or violation
26 
continues[:], 
OR 
DIVESTMENT, 
OR 
BOTH; 
and 
the 
[Commission]
27 
ADM INISTRATIVE AGENCY is hereby authorized and empowered to impose
28 
such fine, 
OR ORDER DIVESTMENT, after due notice and hearing[.]:
29 
PROVIDED, THAT SHOULD A LESSER FINE OR PENALTY BE IMPOSED
30 
UNDER THE CHARTER OF THE ADMINISTRATIVE AGENCY OR THE
31 
SPECIAL LAW GOVERNING THE PUBLIC SERVICE, THE AMOUNT OF
32 
FINE OR PENALTY PROVIDED FOR UNDER THIS SECTION SHALL
33 
APPLY.
34
35 
IN  CASES WHERE RATES COLLECTED BY THE PUBLIC SERVICE EXCEED
36 
THE RATES AUTHORIZED BY THE ADMINISTRATIVE AGENCY, THE
18


1 
ADMINISTRATIVE AGENCY MAY ORDER A REFUND TO CONSUMERS IN
2 
LIEU OF OR IN  ADDITION TO THE FINE OR PENALTY IMPOSED UNDER
3 
THIS ACT OR THE SPECIAL LAWS GOVERNING THE PUBLIC SERVICE.
4 
"The fines so imposed shall be paid to the Government of the Philippines through
5 
the [Commission] ADMINISTRATIVE AGENCY, and failure to pay the fine OR
6 
COMPLY W ITH THE ORDER TO REFUND OR DIVEST in any case within the
7 
same specified in the order or decision of the [Commission] ADMINISTRATIVE
8 
AGENCY shall be deemed good and sufficient reason for the suspension of the
9 
FRANCHISE, certificate, CONCESSION, OR ANY OTHER APPROPRIATE
10 
FORM OF AUTHORIZATION FOR THE OPERATION of said public service
11 
until payment shall be made OR THE ORDER IS COMPLIED W ITH. Payment
12 
may also be enforced by appropriate action brought in a court of competent
13 
jurisdiction. The remedy provided in this section shall not be a bar to, or affect
14 
any other remedy provided in this Act but shall be cumulative and additional to
15 
such remedy or remedies."
16
17 
Sec. 14. Section 22 of Commonwealth Act No. 146, as amended, Is hereby
18 
amended to read as follows:
19 
SEC. 
22. 
Observance of the orders, decisions, and 
regulations of the
20 
[Commission] ADM INISTRATIVE AGENCY and of the terms and conditions of
21 
any certificate may also be enforced by mandamus or injunction in appropriate
22 
cases, or by action to compel the specific performance of the orders, decisions,
23 
and regulations so made, or of the duties imposed by law upon such public
24 
service: Provided, That the [Commission] ADMINISTRATIVE AGENCY may
25 
compromise any case that may arise under this Act in such manner and for such
26 
amount as it may deem just and reasonable.
27
28 
Sec. 15. Section 23 of Commonwealth Act No. 146, as amended, is hereby
29 
amended to read as follows:
30 
"SEC. 23. Any public service corporation that shall perform, commit, or do any
31 
act or thing herein forbidden or prohibited or shall neglect, fail or omit to do or
32 
perform any act or thing herein required to be done or performed, shall be
33 
punished by a fine not exceeding [twenty-five thousand pesos] TWO M ILLION
34 
PESOS (PH P2,000,000.00), or by imprisonment [not exceeding five years] OF
35 
NOT LOWER THAN SIX (6 ) YEARS AND ONE (1 ) DAY TO TWELVE (1 2 )
36 
YEARS, or both, at the discretion of the court."
19


1 
Sec. 16. Section 24 of Commonwealth Act No. 146, as amended, is hereby
2 
amended to read as follows:
3 
"SEC. 24. Any person who shall knowingly and willfully perform, commit, or do,
4 
or participate in performing, committing, or doing, or who shall knowingly and
5 
willfully cause, participate, or join with others in causing any public service
6 
corporation or company to do, perform or commit, or who shall advice, solicit,
7 
persuade, or knowingly and willfully instruct, direct, or order any officer, agent,
8 
or employee of any public service corporation or company to perform, commit, or
9 
do any act or thing forbidden or prohibited by this Act, shall be punished by a
10 
fine 
not 
exceeding 
[two 
thousand 
pesos] 
TWO 
M ILLIO N  
PESOS
11 
(PHP2,000/000.00)/ or imprisonment [not exceeding two years] OF NOT
12 
LOWER THAN SIX (6 ) YEARS AND ONE (1 ) DAY TO TWELVE (1 2 )
13 
YEARS, or both, at the discretion of the court[: Provided, however. That for
14 
operating a private passenger automobile as a public service without having a
15 
certificate of public convenience for the same, the offender shall be subject to
16 
the penalties provided for in section sixty seven (j) of Act Numbered Thirty-nine
17 
hundred an ninety-two]."
18
19 
Sec. 17. Section 25 of Commonwealth Act No. 146, as amended, is hereby
20 
amended to read as follows:
21 
"SEC. 25. Any person who shall knowingly and willfully neglect, fail, or omit to do
22 
or perform, or who shall knowingly and willfully cause or join or participate with
23 
others in causing any public service corporation or company to neglect, fail, or
24 
omit to do or perform, or who shall advise, solicit, or persuade, or knowingly and
25 
willfully instruct, direct, or order any officer, agent, or employee of any public
26 
service corporation or company to neglect, fail, or omit to do any act or thing
27 
required to be done by this Act, shall be punished by a fine not exceeding [two
28 
thousand 
pesos] 
TWO 
M ILLIO N  
PESOS 
(PH P2,000,000.00) 
or 
by
29 
imprisonment [not exceeding two years] OF NOT LOWER THAN SIX (6 )
30 
YEARS AND ONE (1 ) DAY TO 
TWELVE (1 2 ) YEARS, or both, at the
31 
discretion of the court."
32
33 
Sec. 18. Section 26 of Commonwealth Act No. 146, as amended, is hereby
34 
amended to read as follows:
35 
"SEC. 26. Any person who shall destroy, injure, or interfere with any apparatus
36 
or appliance owned or operated by or in charge of the [Commission]
20


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
1
ADM INISTRATIVE AGENCY or its agents, shall be deemed guilty of a 
misdemeanor and upon conviction shall be punished by a fine [not exceeding 
one thousand pesos] OF THE AMOUNT EQUIVALENT TO THE ACTUAL 
MARKET VALUE OF THE APPARATUS OR APPLIANCE DESTROYED OR 
INJURED 
PLUS A 
FINE 
NOT 
EXCEEDING TWO 
M ILLIO N 
PESOS 
(PHP2/000,000.00) or imprisonment [not exceeding six months] OF NOT 
LOWER THAN SIX (6 ) YEARS AND ONE (1 ) DAY TO 
TWELVE (1 2 ) 
YEARS, or both at the discretion of the court.
[Any public service permitting the destruction, injury to, or interference with, any 
such apparatus or appliances shall forfeit a sum not exceeding four thousand 
pesos for each offense.]"
SEC. 19. Section 27 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
SEC. 27. This Act shall not have the effect to release or waive any right of action 
by the [Commission] ADMINISTRATIVE AGENCY or by any person for any 
right, penalty, or forfeiture which may have arisen or which may arise, under any 
of the laws of the Philippines, and any penalty or forfeiture enforceable under 
this Act shall not be a bar to or affect a recovery for a right, or affect or bar any 
criminal proceedings against any public service or person or persons operating 
such public service, its officers, directors, agents, or employees.
SEC. 20. Section 28 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 
28. 
Violations of the orders, 
decisions, 
and 
regulations of the 
ADM INISTRATIVE AGENCY [Commission] and of the terms and conditions of
any 
FRANCHISES, 
certificates, 
CONCESSIONS, 
OR ANY 
FORM 
OF 
AUTHORIZATION FOR THE OPERATION OF A PUBLIC SERVICE issued by 
the ADMINISTRATIVE AGENCY [Commission shall prescribe after sixty days], 
and violations of the provisions of this Act shall prescribe [after one hundred and 
eighty days] IN  ACCORDANCE W ITH ACT NO. 3326, ENTITLED "AN ACT 
TO 
ESTABLISH 
PERIODS 
OF 
PRESCRIPTION 
FOR 
VIOLATION 
PENALIZED BY SPECIAL ACTS AND MUNICIPAL ORDINANCES AND TO 
PROVIDE 
WHEN 
PRESCRIPTION 
SHALL 
BEGIN 
TO 
RUN," 
AS 
AMENDED."
21


1 
SEC. 21. Section 29 of Commonwealth Act No. 146, as amended, is
2 
hereby amended to read as follows:
3 
"SEC. 
29. 
All 
hearing 
and 
investigations 
before 
the 
[Commission]
4 
ADMINISTRATIVE AGENCY shall be governed by rules adopted by the
5 
[Commission] ADMINISTRATIVE AGENCY, and in the conduct thereof the
6 
[Commission] ADM INISTRATIVE AGENCY shall not be bound by the technical
7 
rules of legal evidence: Provided, That the [Public Service Commissioner or
8 
Deputy Commissioner] 
HEARING 
OFFICER 
may summarily 
punish 
for
9 
contempt by a fine not exceeding TWO THOUSAND PESOS (PH P2,000.00)
10 
[two hundred pesos] or by imprisonment not exceeding ten days, or both, any
11 
person guilty of misconduct in the presence of the [Commissioner or Deputy
12 
Commissioner] HEARING OFFICER or so near the same as to interrupt the
13 
hearing or session or any proceedings before them, including cases in which a
14 
person present at a hearing, session, or investigation held by [either of] the
15 
[Commissioner] THE HEARING OFFICER refuses to be sworn as a witness or
16 
to answer as such when lawfully required to do so. To enforce the provisions of
17 
this section, the [Commission] ADM INISTRATIVE AGENCY may, if necessary,
18 
request the assistance of the municipal or city police for the execution of any
19 
order made for said purpose."
20
21 
SEC. 22. Section 30 of Commonwealth Act No. 146, as amended, is
22 
hereby amended to read as follows:
23 
SEC. 30. (a) The [Commission] ADMINISTRATIVE AGENCY may issue
24 
subpoenas and subpoenas duces tecum, for witnesses in any matter or inquiry
25 
pending before the [Commission] ADMINISTRATIVE AGENCY and require the
26 
production of all books, papers, tariffs, contracts, agreements, and all other
27 
documents, which the [Commission] ADMINISTRATIVE AGENCY may deem
28 
necessary in any proceeding. Such process shall be issued under the seal of the
29 
[Commission] 
ADMINISTRATIVE 
AGENCY, 
signed 
by 
one 
of 
the
30 
[Commissioners or by the secretary] HEARING OFFICER, and may be served
31 
by any person of full age, or by registered mail. [In case of] [d]Disobedience [to
32 
such] to  o r fa ilu re  to  com ply w ith  such subpoena, shall co n stitu te
33 
in d ire ct contem pt, and 
m ay be in stitu te d  IN  THE MANNER AS
34 
PROVIDED IN  THE RULES OF COURT before the appropriate Court, [the
35 
Commission may invoke the aid of the Supreme Court, or of any Court of First
36 
Instance of the Philippines in requiring the attendance and testimony of
22


1 
witnesses and the production of books, papers, and documents under the
2 
provisions of this chapter, and the Supreme Court or any Court of First Instance
3 
of the Philippines within the jurisdiction of which such inquiry is carried on, may,
4 
in case of contumacy or refusal to obey a subpoena, issue to any public service
5 
subject to the provisions of this Act, or to any other person, an order requiring
6 
such public service or other person to appear before the Commission and
7 
produce books and papers if so ordered and give evidence touching the matter in
8 
question; and any failure to obey such order of the Court may be punished by
9 
such court as a contempt thereof.]
10 
(b) Any person who shall neglect or refuse to answer any lawful inquiry or
11 
produce before the [Commission] ADMINISTRATIVE AGENCY books, papers,
12 
tariffs, contracts, agreements, and documents or other things called for by said
13 
[Commission] ADMINISTRATIVE AGENCY, if in his power to do so, in
14 
obedience 
to 
the 
subpoena 
or lawful 
inquiry 
of 
the 
[Commission]
15 
ADM INISTRATIVE AGENCY upon conviction thereof by a court of competent
16 
jurisdiction, shall be punished by a fine not exceeding [five] THIRTY thousand
17 
pesos (PH P30,000.00) or by imprisonment not exceeding SIX (6 ) MONTHS
18 
[one year], or both, in the discretion of the court.
19 
(c) The [Commissioner and Deputy Commissioner,] OFFICIALS AND HEARING
20 
OFFICERS OF THE [the chiefs of divisions, the attorneys of the Commission]
21 
ADMINISTRATIVE AGENCY, [and the deputy secretaries] shall have the
22 
power to administer oaths in all matters under the jurisdiction of the
23 
[Commission] ADM INISTRATIVE AGENCY.
24 
(d) Any person who shall testify falsely or make any false affidavit or oath before
25 
the [Commission] ADMINISTRATIVE AGENCY or before any of its members
26 
shall be guilty of perjury, and upon conviction thereof in a court of competent
27 
jurisdiction, shall be punished as provided by law.
28 
(e) Witnesses appearing before the [Commission] ADM INISTRATIVE AGENCY
29 
in obedience to subpoena or subpoena duces tecum, shall be entitled to receive
30 
the same fees and mileage as witnesses attending REGIONAL TRIAL COURTS
31 
[Courts of First Instance] in civil cases.
32 
(f) Any person who shall obstruct the [Commission] ADMINISTRATIVE
33 
AGENCY or either of the [Commissioners] HEARING OFFICERS while engaged
34 
in the discharge of official duties, or who shall conduct himself in a rude,
35 
disrespectful or disorderly manner before the [Commission] ADMINISTRATIVE
36 
AGENCY either of the [Commissioners] HEARING OFFICERS, while engaged
23


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
1
in the discharge of official duties, or shall orally or in writing be disrespectful to, 
offend or insult either of the [Commissioners] HEARING OFFICERS on 
occasion or by reason of the performance of his official duties, upon conviction 
thereof by a court of competent jurisdiction, shall be punished for each offense 
by a fine not exceeding THIRTY THOUSAND PESOS (PH P30,000.00) [one 
thousand pesos], or by imprisonment not exceeding six (6 ) months, or both, in 
the discretion of the Court.
SEC. 23. Section 31 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 31. No person shall be excused from testifying or from producing any 
book, document, or paper in any investigation or inquiry by or upon the hearing 
before the [Commission] ADMINISTRATIVE AGENCY, when ordered so to do 
by said [Commission] ADMINISTRATIVE AGENCY, except when the testimony 
or evidence required of him may tend to incriminate him. Without the consent of 
the 
interested 
part, 
no 
member 
or 
employee 
of 
the 
[Commission] 
ADMINISTRATIVE AGENCY shall be compelled or permitted to give testimony 
in any civil suit to which the [Commission] ADMINISTRATIVE AGENCY is not a 
party, with regard to secrets obtained by him in the discharge of his official 
duty."
SEC. 24. Section 32 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 32. The [Commission] ADMINISTRATIVE AGENCY may, in any 
investigation or hearing, by its order in writing, cause the deposition of witnesses 
residing within or without the Philippines to be taken in the manner AND 
UNDER THE CONDITIONS prescribed by the Rules of Court. Where witnesses 
reside in places distant from Manila and it would be inconvenient and expensive 
for them to appear personally before the [Commission] ADMINISTRATIVE 
AGENCY. [t]The [Commission] ADMINISTRATIVE AGENCY may, by proper 
order, commission any clerk of the REGIONAL TRIAL COURT [Court of First 
Instance, municipal judge or justice of the peace] of the Philippines to take the 
deposition of witnesses in 
any case 
pending 
before the 
[Commission] 
ADMINISTRATIVE 
AGENCY. 
It shall 
be the duty of the official so 
commissioned, to designate promptly a date or dates for the taking of such 
deposition, giving timely notice to the parties, and on said date to proceed to
24


1 
take the deposition, reducing it to writing. After 
the depositions have been
2 
taken, the official so commissioned shall certify to the depositions taken and
3 
forward them as soon as possible to the [Commission] ADMINISTRATIVE
4 
AGENCY. It shall be the duty of the respective parties to furnish stenographers
5 
for taking and transcribing the testimony taken. [In case there are no
6 
stenographers available, the testimony shall be taken in longhand by such
7 
person as the clerk of court, the municipal judge or justice of the peace may
8 
designate. The Commission 
may also commission a notary public to take the
9 
depositions in the same manner herein provided.]
10 
"The [Commission] ADMINISTRATIVE AGENCY may also, by proper order,
11 
authorize any of the attorneys of the legal division or division chiefs of the
12 
[Commission] ADMINISTRATIVE AGENCY, if they be lawyers, to hear and
13 
investigate any case filed with the [Commission] ADM INISTRATIVE AGENCY
14 
and in connection therewith to receive such evidence as may be material thereto.
15 
At the conclusion of the hearing or investigation, the attorney or division chief so
16 
authorized shall submit the evidence received by him to the [Commission]
17 
ADMINISTRATIVE AGENCY to enable the latter to render its decision."
18
19 
SEC. 25. Section 33 of Commonwealth Act No. 146, as amended, is
20 
hereby amended to read as follows:
21 
"SEC. 33. Every order made by the [Commission] ADM INISTRATIVE AGENCY
22 
shall be served upon the person or public service affected thereby, within ten
23 
(1 0 ) days from the time said order is filed, by personal delivery or by ordinary
24 
mail, upon the attorney of record, or in case there be no attorney of record,
25 
upon the party interested; and in case such certified copy is sent by registered
26 
mail, the registry mail receipt shall be prima facie evidence of the receipt of such
'l l  
order by the public service in due course of mail. All orders of the [Commission]
28 
ADMINISTRATIVE AGENCY to continue an existing service or prescribing
29 
rates to be charged shall be immediately operative; all other orders shall become
30 
effective upon the dates specified therein: Provided, however, That orders,
31 
resolutions or decisions in controverted matters and not referring to the
32 
continuance of an existing service or prescribing rates to be charged shall not be
33 
effective unless otherwise provided by the [Commission] ADMINISTRATIVE
34 
AGENCY, and shall take effect thirty (3 0 ) days after notice to the parties."
35
25


1 
SEC. 26. Section 34 of Commonwealth Act No. 146, as amended, is hereby
2 
amended to read as follows:
3 
"SEC. 34. Any interested party may request the reconsideration of any order,
4 
ruling, or decision of the [Commission] ADMINISTRATIVE AGENCY by the
5 
rules by means of a petition filed not later than fifteen (1 5 ) days after the date
6 
of the notice of the order, ruling or decision in question. The grounds on which
7 
the request for reconsideration is based shall be clearly and specifically stated in
8 
the petition. Copies of said petition shall be served on all parties interested in the
9 
matter. It shall be the duty of the [Commission] ADMINISTRATIVE AGENCY
10 
to call a hearing on said petition immediately, with notice to the parties, and
11 
after hearing to decide the same promptly, either denying the petition or
12 
revoking or modifying the order, ruling or decision under consideration."
13
14 
SEC. 27. Section 35 of Commonwealth Act No. 146, as amended, is
15 
hereby amended to read as follows:
16 
"SEC. 
35. 
ANY 
ORDER, 
RULING, 
OR 
DECISION 
OF 
THE
17 
ADMINISTRATIVE AGENCY MAY BE APPEALED IN  THE MANNER AND
18 
W ITH IN  THE PERIOD PRESCRIBED UNDER THE RULES OF COURT AND
19 
OTHER PERTINENT LAWS. [The Supreme Court is hereby given jurisdiction to
20 
review any order, ruling, or decision of the Commission and to modify or set
21 
aside such order, ruling, or decision when it clearly appears that there was no
22 
evidence before the Commission to support reasonably such order, ruling, or
23 
decision, or that the same is contrary to law, or that it was without the
24 
jurisdiction of the Commission. The evidence presented to the Commission,
25 
together with the record of the proceedings before the Commission, shall be
26 
certified by the secretary of the Commission to the Supreme Court. Any order,
27 
ruling, or decision of the Commission may likewise be reviewed by the Supreme
28 
Court upon a writ of certiorari in proper cases. The procedure for review, except
29 
as herein provided, shall be prescribed by rules of the Supreme Court.]
30
31 
SEC. 28. Section 36 of Commonwealth Act No. 146, as amended, is
32 
hereby amended to read as follows:
33 
"SEC. 36. Any order, ruling, or decision of the [Commission] ADM INISTRATIVE
34 
AGENCY may be reviewed on the application of any person or public service
35 
affected thereby, by certiorari in appropriate cases, or by petition, to be known
36 
as Petition for Review, which shall be filed within thirty (3 0 ) days from
26


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
1
notification of such order, ruling, or decision or, in case a petition for the 
reconsideration of such order, ruling or decision is filed in accordance with the 
preceding section and the same is denied, it shall be filed within fifteen (1 5 ) 
days after notice of the order denying reconsideration. Said petition shall be 
placed on file in the office of the clerk of the Supreme Court who shall furnish 
copies thereof to the [Secretary of the Commission] ADMINISTRATIVE 
AGENCY and other parties interested."
SEC. 29. Section 37 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 37. The institution of a writ of certiorari or other special remedies in the 
Supreme Court shall in no case supersede or stay any order, ruling or decision of 
the [Commission] ADMINISTRATIVE AGENCY, unless the Supreme Court shall 
so direct, and the appellant may be required by the Supreme Court to give bond 
in such form and of such amount as may be deemed proper."
SEC. 30. Section 38 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC 38. The chief of the legal division or any other attorneys of the 
[Commission] ADMINISTRATIVE AGENCY shall represent the same in all 
judicial proceedings. It shall be the duty of the Solicitor General to represent the 
[Commission] ADM INISTRATIVE AGENCY in any judicial proceeding if, for 
special reasons, the Commissioner shall request his intervention."
SEC. 31. Section 39 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 39. Any proceeding in any court of the Philippines directly affecting an[d] 
order of the [Commission] ADM INISTRATIVE AGENCY or to which the 
[Commission] ADMINISTRATIVE AGENCY is a party, shall have preference 
over all other civil proceedings pending in such court, except election cases."
SEC. 32. Section 40 of Commonwealth Act No. 146, as amended, is 
hereby amended to read as follows:
"SEC. 40. [The Commission is authorized and ordered to charge and collect from 
any public service or applicant, as the case may be, the following fees as 
reimbursement of its expenses in the authorization, supervision and/or regulation
27


1 
of 
public 
services:] 
AD M IN ISTR ATIVE 
FEES 
AND 
CHARGES. 
-
2 
Adm inistrative Agencies may collect from  any public service or public
3 
u tility  reasonable fees and charges, and impose appropriate penalties
4 
and fines as provided by law: Provided, That such FEES, CHARGES,
5 
penalties and fines may be adjusted to its present value every five (5)
6 
years using the Consumer Price Index (CPI) as published by the
7 
Philippine Statistics A uthority (PSA).
8 
[(a)The charge of fifty pesos for the registration of:
9 
"x X X
10 
Aside from the appropriations for the Commission under the annual General
11 
Appropriation Act, any unexpended balance of the fees collected by the
12 
Commission under this section shall be constituted x x x and other expenses
13 
necessary for efficient administration and effective supervision and regulation of
14 
public services.]
15
16 
SEC. 33. Interpretation. - This Act shall be subject to and consistent with
17 
the regulatory powers of the State to promote public interest in Article IX-C,
18 
Section 4 and Article XII, Section 17 of the Constitution.
19 
A person classified as a public utility prior to the effectivity of this Act and
20 
declassified as such under this Act shall be considered a public service and a
21 
business affected with public interest for purposes of Article XII, Section 17 of
22 
the Constitution. Such person shall continue to be subject to regulation by
23 
relevant Administrative Agencies under existing laws. This Act does not redefine
24 
the term Common Carrier as defined under Article 1732 of Republic Act No. 386,
25 
otherwise known as the "Civil Code of the Philippines," as amended, or alter its
26 
obligation to exercise extraordinary diligence as provided thereunder.
27 
No franchise, certificate, concession, or authorization granted by the
28 
appropriate Administrative Agencies under Section 7 of this Act shall be (a)
29 
exclusive in character, (b) for a longer period than fifty (50) years: Provided,
30 
That if a public service has maintained an exemplary record in the delivery of
31 
services, and has made substantial investments on infrastructure, technology or
32 
equipment for its operations, such performance and size of investment shall be
33 
taken, and the application for renewal of the franchise, certificate, concession or
34 
authorization of the public service shall be given priority by the appropriate
35 
Administrative Agencies; and (c) granted except under the condition that it shall
28


2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
1
be subject to amendment, alteration, or repeal by Congress when the public 
interest so requires.
SEC. 34. Non-Impairment o f Existing Agreements. -  The application and 
implementation of the pertinent provisions of this Act shall not impair vested 
rights or obligations of contracts. Current and subsisting concession agreements 
and other similar contracts of juridical persons with government agencies or 
government-owned and -controlled corporations covering activities hereunder 
classified as public utilities shall remain valid and in force in accordance with the 
existing terms and conditions the parties agreed to thereunder until the 
expiration or termination thereof.
SEC. 35. Suppietory Application o f Commonwealth Act No. 146. - 
Commonwealth Act No. 146, as amended, shall be construed as a general law 
that shall apply suppletorily to special laws or existing sector-specific laws 
governing public services, except for Section 13 (d) of Commonwealth Act No. 
146, as amended, under by Section 5 of this Act.
SEC. 36. Conduct o f Regular Studies. -  The NEDA shall conduct regular 
studies on whether regulatory reform is warranted in a public service sector to 
improve consumer welfare and to submit its recommendation to Congress.
SEC. 37. Congressional Oversight and Periodic Review. — A Congressional 
Oversight Committee shall be created that will conduct a periodic review 
commencing from the effectivity of this Act. The Congressional Oversight 
Committee shall be composed of the Chairperson of the Senate Committee on 
Public Services, the Chairperson of the House of Representatives Committee on 
Economic 
Affairs, 
and 
representatives 
of 
other 
relevant 
congressional 
committees.
SEC. 38. 
Performance Audit -  Administrative agencies shall conduct a 
performance audit every three (3) years by an independent evaluation team to 
ensure the quality of services provided to the public and the ability of manpower 
and system resources of the public service provider to immediately respond to 
emergency cases. Metrics for various types of services must be established to 
sustain reliability, security, and safety of the public.
29


1 
SEC. 39. Implementing Rules and Regulations. -  All administrative
2 
agencies under Section 4 of this Act shall, in coordination with the NEDA,
3 
promulgate rules and regulations to implement the provisions of this Act, within
4 
six (6) months from the effectivity of this Act.
5
6 
SEC. 40. Separability Clause. -  Should any portion or provision of this Act
7 
be declared unconstitutional, the remainder of this Act or any provision not
8 
affected thereby shall remain in force and effect.
9
10 
SEC. 41. Repealing Clause. - All laws, decrees, orders, rules and
11 
regulations or other issuances or parts thereof, including Commonwealth Act No.
12 
146 or the Public Service Act, as amended, inconsistent with the provisions of
13 
this Act are hereby repealed or modified accordingly. This includes:
14 
(a) 
Republic Act No. 
6957 entitled "An Act Authorizing the Financing,
15 
Construction, Operation, and Maintenance of Infrastructure Projects by the
16 
Private Sector, and for other purposes," as amended, on the limitation of foreign
17 
investment in a facility operator where a public utility franchise is required;
18 
(b) 
Republic Act No. 9295, otherwise known as the Domestic Shipping
19 
Development Act of 2004, as amended, on the limitation of foreign investment in
20 
Domestic Ship Operator, Domestic Ship Owner, Ship Builder, Ship Repairer, and
21 
such other provisions therein inconsistent with this Act;
22 
(c) Republic Act No. 9497, otherwise known as the Civil Aviation Authority of the
23 
Philippines Act of 2008, as amended, on the limitation of foreign investment in
24 
relation to the registration of aircraft and restriction on the issuance of permits
25 
and authority, and such other provisions therein inconsistent with this Act;
26 
(d) Republic Act No. 776, otherwise known as the Civil Aeronautics Act of the
27 
Philippines, as amended, on the limitation on foreign investments in relation to
28 
the registration of the aircraft, issuance of permits and authority, and such other
29 
provisions therein inconsistent with this Act;
30 
(e) Presidential Decree No. 1112, otherwise known as the "Toll Operation
31 
Decree," as amended, on the limitation on contracts for the construction,
32 
operation and maintenance of toll facilities only to citizens of the Philippines and
33 
such other provisions therein inconsistent with this Act;
34 
(f) Republic Act No. 9136, otherwise known as the EPIRA law, as amended,
35 
except the provisions and clauses on Cross Ownership, Market Power Abuse, and
36 
Anti-Competitive Behavior;
30


1 
(g) Executive Order No. 202 Series of 1987, entitled "Creating the Land
2 
Transportation Franchising and Regulatory Board," as amended and the
3 
Administrative Code of 1987, as amended;
4 
(h) Presidential Decree No. 857, otherwise known as the "Revised Charter of the
5 
Philippine Port Authority," as amended;
6 
(i) Republic Act No. 6234, otherwise known as the "Creation of the Metropolitan
7 
Waterworks and Sewerage System" (MWSS), as amended;
8 
(j) Presidential Decree No. 198, otherwise known as the "Provincial Water
9 
Utilities Act of 1973," as amended;
10 
(k) Department of Transportation Department Order No. 2018-13 on the
11 
classification of the Transport Network Companies and Transportation Network
12 
Vehicles Service as public utilities; and
13 
(I) Republic Act No. 7925, otherwise known as the "Public Telecommunications
14 
Policy Act of the Philippines," on the classification of all telecommunications
15 
entities as public utilities.
16
17 
SEC. 42. Effectivity. - This Act shall take effect fifteen (15) days after its
18 
publication in the Official Gazette or in a newspaper of general circulation.
Approved,
31