t 
FOURTEENTH CONGFU3SS OF THE RaPUBLIC ) 
First Regular Session 
1 
OF THE PHILIPPINES 
17 
JIi- -3 
‘ii 
c 
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S E N A T E  
S. B. No. 
Introduced by Senator Ramon )Bong Revilla, Jr. 
EXPLANATORY dOTE 
This bill introduces amendments to the Pub1 c Service Law, Commonwealth Act 
No. 146, amended. The amendments redefine the ter “public service” in the said law to 
exclude certain activities from the protection and egulation of the law, including the 
burden of obtaining the certificate of public conveni I c e .  
The public service law requires an enterprise ngaged in a public service to obtain 
a certificate of public convenience, or of public co venience and necessity as the case 
maybe. Issuance of such certificate effectively g ants a franchise to the enterprise, 
guaranteeing it a fixed rate of return, based on the alue of the assets it employs in the 
public service. Reciprocally, it should comply with the rules and requirements imposed 
by the regulatory agency, which at present is either t 1 
e Department of Transportation and 
Communications or the Energy Regulatory Board. 
Activities classified in the existing law as “pdhlic service” include the following: 
a. 
b. 
C. 
d. 
e. 
f. 
g. 
h. 
1. 
Common Carriers - railroad, street nd traction railways, subway motor 
vehicle, whether for freight or passen er; 
Steamboat, steamship line, portines, ferries and water craft, transporting 
Shipyard, marine railway, marine rep ir shop, wharf or dock; 
Express Service; 
freight and/or passengers; 
Ice plant, ice refrigeration plant; 
Canal, irrigation system; 
Gas, electric lights, heat and power, dater supply and power; 
Petroleum, sewerage system; 
Wire or wireless communications sdstem, wire or wireless broadcasting 
stations. 
1 
Many advances in technology, and 
s in the industrial and economic 
in November 1936. These 
and cheaper to put up the 
These changes remove the 
imply, thus putting 
as franchised public 
the amendments in 
situation have taken place since CA 
technological and industrial changes have 
facilities required to render some of the 
need to create the regulated 
into question the continued 
services with a guarmteed 
this bill would exclude 
146 
EXPRESS SERVICE 
At present there are several express services in operation. They deliver messages 
and parcels domestically and/or internationally. 


SHIPYARD, MARINE RAILWAY, MARINE W P A I R  SHOP, WHARF OR DOCK 
These activities are already under the jurisdiction of either MARINA or PPA. 
There is no longer any reason for the first three activities, under the MARINA 
jurisdiction, to be considered a 2ublic service; they are not so considered in any market 
economy country that we know of. Wharves and docks are under the jurisdiction of the 
PPA. 
ICE PLANT, ICE-REFRIGERATION PLANT 
Tremendous advances have been made in the ice-making, refrigeration cold 
storage and food preservation industries and their technologies in the last 50 years. These 
advances have brought down the cost of refrigeration, reduced the economic size of ice 
plants and refrigeration plants, greatly widened the uses of and need for refrigeration, 
particularly in food preservation, storage and processing. Ice making equipment in the 
last 50 years have become so small, inexpensive and simple that an ice plant inay be 
viable in a small fishing village. This possibility could not have been thought of with the 
state of technology in the 1920’s. 
Thus ice and refrigeration plants should be allowed to proliferate as private 
businesses to serve the needs of farmers, fishermen and general public instead of being 
limited by franchises and regulation. 
CANAL, IRRIGATION SYSTEMS 
Instead of limiting establishment of irrigation systems, by private organizations 
with franchise requirement, they should be encouraged to relieve government’s burden of 
widening the irrigated area in the country. This liberalization will not remove the need to 
apply with the appropriate government agency for the rights to impound and distribute 
the water froin source. 
PETROLEUM 
The petroleum industry is subject to regulation with respect to selling prices of 
finished products by the Energy Regulatory Board. The industry itself is not presently 
considered as a public utility, nor subject to any other regulation as such. 
The bill also provides that purely freight ships, without a fixed route, should not 
be considered a public service. We believe they should be subject to regulation only with 
respect to the maximum freight rates they may charge. We suggest that the ceiling rates 
should be equal to those allowed to ships and shipping lines carrying both passengers and 
freight. 
Another important provision of the bill allows the regulatory agencies to establish 
maximum charges for any public service as may be determined to be better suited to 
ceiling rather than fixed rates. The law only allows the regulatory agencies to fix definite 
rates for the public service. If for example the freight rate fixed per ton of cargo froin 
Manila to Lucena is P500, and a trucker were to charge only P480, he would theoretically 
be in violation of his license. The amendment we propose would allow the Board of 
Transportation to establish P500 as the maximum, riot the fixed rate. On this rate setting, 
the trucker could not charge any rate he chooses, provided the P500 rate is not exceeded. 
This would induce competition into the operation of a number of public services with 
expected consequent benefits to the general public. 
In view of the foregoing, passage of this 


FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
p 
,J\\\ 
:’I ’1% 
First Regular Session % 
S E N A T E  
,,‘ 
S.B.No. 773 
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Introduced by Senator Ramon Bong Revilla, Jr. 
AN ACT 
DEREGULATING CERTAIN PUBLIC SERVICES, AMENDING FOR THE 
PURPOSE COMMONWEALTH ACT NO. 146 AS AMENDED, AND FOR 
OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Statement of Policy on Public Services - Public services are 
essential services rendered to the general public for a fee by one (1) or a limited number 
of enterprises in a specific area. Government is responsible for ensuring that these 
services are rendered adequately, extensively, continuously, and fairly. Wherever private 
enterprise is able to render the public services satisfactorily, government shall encourage 
private enterprises to do so. 
Franchises to render specific public services may be extended to one (I) or a 
limited number of private enterprises in a specified service area, if necessary to 
encourage private enterprises to render such public service. The best qualified and most 
capable to render such public service shall be selected in the required number from 
among competing applicants. Such franchises have the effect of limiting normal 
competition in renewing public service, and there are therefore subjected to regulation by 
the designated agency of government. 
Continuing review is required of the public services presently franchised by 
government to determine whether the public interest is better served by releasing these 
public services from the franchising requirement, and / or by subjecting them to full or 
limited price competition. 
Pursuant to the above policy, this Act revises the definition of “public service” in 
order to deregulate certain activities, and allows regulatory agencies to impose maximum 
fee or charge ceilings in addition to their authority to fix definite fee or charges for the 
public service. 
SECTION 2. To carry out the purposes of this Act, Section 13 (b), Section 
14 and Section 16 (c) of Commonwealth Act No. 146 as amended, otherwise 
known as the Public Service Law, are hereby further amended to read as follows: 
“SECTION 13 (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 business purposes, any common 
carrier, railroad, street railway, traction railway, sub-way motor vehicle, either for 
freight or passenger, or both with or without fixed route and whatever may be its 
classification, freight or carrier service of any class [express service,] 
PASSENGER steamboat, or steamship line, pontines, ferries, and water craft 
engaged in the transportation of passengers [or freight 3 or both PASSENGERS 


AND FREIGHT; [shipyard, marine railways, marine repair shop, wharf or dock, 
ice plant, ice-refrigeration plant, canal, irrigation system,] gas, electric light, heat 
and power, water supply and power [petroleum,] sewerage system, wire or 
wireless broadcasting stations and other similar public services. Provided, 
however, That a person engaged in agriculture, not otherwise a public service, 
who owns a motor vehicle and uses it personally and/or enters into a special 
contract whereby said motor vehicle is offered for hire or compensation to a third 
party or third parties engaged in agriculture , not itself or themselves a public 
service, for operation by the latter for a limited time and for a specific purpose 
directly connected with the cultivation of his or their farni, the transportation, 
processing, and marketing of agricultural products of such third party or third 
parties shall not be considered as operating a public service for the purpose of this 
Act. 
“SECTION 14. The following are exempted from the provisions of the 
preceding section: 
Warehouse [;l, INCLUDING COLD STORAGE PLANTS: 
Vehicles drawn by animals and bancas moved by oar or sail, and 
tugboats and lighters; 
Airships within the Philippines except as regards the fixing of their 
maximum rates on freight and passengers; 
INTERISLAND CARGO VESSELS WHICH DO NOT CARRY 
PAYING PASSENGERS, REGULARLY OR OTHERWISE, 
AND HAVE NO FIXED ROUTE, EXCEPT AS REGARDS THE 
FIXING OF THEIR MAXIMUM RATES ON FREIGHT: 
[ 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.” 
“SECTION 16 (c). To fix and determine, OR TO FIX MAXIMUM 
CEILINGS OF, individual or joint rates, toll, charges, classification, or 
schedules thereof, as well as commutation, mileage, kilometrage, and 
other special rates which shall be imposed, observed, and followed 
thereafter by any public service: Provided, That the Commission may, in 
its discretion, approve rates proposed by public services provisionally and 
without necessity of any hearing; but it shall call a hearing thereon within 
thirty (30) days thereafter, upon publication and notice to the concerns 
operating in the territory affected : Provided, further, That in case the 
public service equipment of an operator is used principally or secondarily 
for the pvniotiorr of a private business, the net profits of said private 
business shall be considered in relation with the public service of such 
operator for the purpose of fixing the rates.” 
SECTION 3 All laws, acts, executive orders, rules and regulations and other issuances 
inconsistent with this Act are hereby repealed or modified accordingly. 
SECTION 4 This Act shall take effect fifreen (15) days after its publication in at least 
two (2) newspapers of general circulation. 
Approved,