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 President most commonly refers to: *President (corporate title) * President (education), a leader of a college or university *President (government title) President may also refer to: Arts and entertainment Film and television *'' Præsident ...

Manuel L. Quezon Manuel Luis Quezon y Molina (, , , ; 19 August 1878 – 1 August 1944), also known by his initials MLQ, was a Filipino people, Filipino lawyer, statesman, soldier, and politician who was president of the Commonwealth of the Philippines from 1 ...

on November 7, 1936, which overseeing

public service A public service or service of general (economic) interest is any service intended to address the needs of aggregate members of a community, whether provided directly by a public sector agency, via public financing available to private busin ...

s 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 Rodrigo Roa Duterte (, ; born March 28, 1945) is a Filipino lawyer and politician who served as the 16th president of the Philippines from 2016 to 2022. He is the first Philippine president from Mindanao, and is the oldest person to assum ...

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.

Provisions of the Public Service Act

Key provisions of the Public Service Act include defining

s, which encompass various industries such as

telecommunications Telecommunication, often used in its plural form or abbreviated as telecom, is the transmission of information over a distance using electronic means, typically through cables, radio waves, or other communication technologies. These means of ...

transportation Transport (in British English) or transportation (in American English) is the intentional Motion, movement of humans, animals, and cargo, goods from one location to another. Mode of transport, Modes of transport include aviation, air, land tr ...

electricity Electricity is the set of physical phenomena associated with the presence and motion of matter possessing an electric charge. Electricity is related to magnetism, both being part of the phenomenon of electromagnetism, as described by Maxwel ...

, and

water supply Water supply is the provision of water by public utilities, commercial organisations, community endeavors or by individuals, usually via a system of pumps and pipes. Public water supply systems are crucial to properly functioning societies. Th ...

. 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

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. 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 Electric power distribution is the final stage in the delivery of electricity. Electricity is carried from the transmission system to individual consumers. Distribution substations connect to the transmission system and lower the transmission ...

, water distribution, and

sewage systems Sewerage (or sewage system) is the infrastructure that conveys sewage or surface runoff (stormwater, meltwater, rainwater) using sewers. It encompasses components such as receiving drains, manholes, pumping stations, storm overflows, and screen ...

. This redefinition clarifies which industries are subject to strict regulations and foreign ownership limitations. 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.

References

External links

Commonwealth Act No. 146
on the

Supreme Court of the Philippines The Supreme Court (; colloquially referred to as the ' (also used in formal writing), is the highest court in the Philippines. It was established by the Taft Commission on June 11, 1901, through the enactment of Act No. 136, which abolished th ...

Republic Act No. 11659
on the Official Gazette of the Philippine Government {{Rodrigo Duterte Philippine legislation 1936 in the Philippines 1936 in law 2022 in the Philippines 2022 in law Economy of the Philippines