Salceda wants amendments to Public Service Law

MANILA, Philippines - Albay Rep. Joey Salceda has proposed amendments to Commonwealth Act No. 146, or the Public Service Law, which was enacted in 1936.

“Understandably, it no longer sufficiently addresses the changes in the economic framework brought about by globalization and rapid technological innovation,” he said in Bill 4468.

“Hence, there is a need to adjust the provisions of the law to bring it to the 21st century and enable it to fulfill its purpose of truly serving the public,” he said.

Salceda said the definition of a “public utility” in the 80-year-old law is not clear.

“Consumers often experience high prices and poor quality of basic services in the Philippines, because only a few local players or oligarchs effectively control the market. Competition and foreign investment are inhibited, because limitations that should only apply to the operation of a public utility are usually also applied to all public services,” he stressed.

He added that his proposed amendments seek the transfer of the functions of the Public Service Commission to various administrative agencies and a clearer definition of a public utility.

His bill defines a public utility “as a public service that regularly supplies the public and directly transmits and distributes to the public through a network its commodity or service of public consequence.”

“A public utility is necessary to the public and a natural monopoly that needs to be regulated when the public interest so requires as determined by Congress,” the bill states.

It further provides: “Any existing law to the contrary notwithstanding, the following shall not be considered a public utility operation: electric power generation, electric power supply, gas supply, petroleum supply, transportation, telecommunications, broadcasting and other public services.”

Salceda also proposed to limit the profits of a public utility to 12 percent and to prohibit income tax as operating expense for rate determination purposes.

He said his proposed amendments “will significantly contribute to increasing competition, as well as protecting the public interest.”

“More competition among providers would result in lower prices and improved quality of basic services, creating a more competitive economy towards a better quality of life for all,” he said.