The Public Service Act of the Philippines, also recognized as Commonwealth Act No. 146, is a Philippine law that was signed into law by President Manuel L. Quezon on November 7, 1936, which overseeing public services in the country. Originating in 1936 during the Commonwealth of the Philippines, the Act's primary goal is to regulate and oversee public utilities and services, ensuring their effectiveness, dependability, and affordability. In 2022, President Rodrigo Duterte signed Republic Act No. 11659, which comprehensively amended the Public Service Act. These amendments lifted foreign ownership restrictions and redefined the scope of public services.[1]
| Public Service Act | |
|---|---|
.svg) | |
| National Assembly of the Philippines | |
| |
| Citation | Commonwealth Act No. 146 |
| Territorial extent | Philippines |
| Signed by | Manuel L. Quezon |
| Signed | November 7, 1936 |
| Amended by | |
| Presidential Decree No. 1, s. 1972 (Integrated Reorganization Plan) Executive Order No. 546, s. 1979 (Creation of Ministry of Public Works and Ministry of Transportation and Communications) Republic Act No. 11659 | |
| Status: Amended | |
Provisions of the Public Service Act
editKey provisions of the Public Service Act include defining public services, which encompass various industries such as telecommunications, transportation, electricity, and water supply. The Act outlines the requirements and procedures for entities to operate as public utilities, including obtaining franchises or certificates of public convenience from the government.
The Act also empowers the government through the Public Service Commission (PSC) to regulate public utilities, including setting rates, ensuring quality standards, and resolving disputes between service providers and consumers.
Amendments to the Public Service Act in the Philippines
edit| Amendments to the Public Service Act | |
|---|---|
 | |
| Congress of the Philippines | |
| |
| Citation | Republic Act No. 11659 |
| Territorial extent | Philippines |
| Signed by | Rodrigo Duterte |
| Signed | March 21, 2022 |
| Status: In force | |
The Public Service Act underwent a significant amendment in 2022 through the passage of Republic Act No. 11659. The amendment aimed to modernize the regulation of public services in the country. The key provisions of the amendment include the redefinition of public utilities, the removal of nationality restrictions on investments, and the introduction of a regulatory framework to foster competition and protect the interests of consumers.[1]
One of the major changes brought about by Republic Act No. 11659 is the redefinition of public utilities. Under the amended law, public utilities are limited to certain essential services such as electricity distribution, water distribution, and sewage systems. This redefinition clarifies which industries are subject to strict regulations and foreign ownership limitations.[2]
Another significant aspect of the amendment is the removal of nationality restrictions on investments in public utilities. Foreign investors are now allowed to fully own public utility companies, provided that they comply with certain regulations and requirements set by the government. This change is expected to attract more foreign investments and promote competition in the public service sector.[3]
References
edit- ^ a b Rivas, Ralf (March 21, 2022). "Duterte signs law allowing full foreign ownership of telcos, airlines". Rappler. Retrieved February 12, 2024.
- ^ "Drilon: Amended Public Service Act to aid next admin's economic recovery". Philippine Daily Inquirer. March 22, 2022. Retrieved February 12, 2024.
- ^ "Lifting restrictions on foreign investments 'good for economy'". Philippine Daily Inquirer. December 26, 2023. Retrieved February 12, 2024.
External links
edit- Commonwealth Act No. 146 on the Supreme Court of the Philippines
- Republic Act No. 11659 on the Official Gazette of the Philippine Government