Public Service Act

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.

Provisions of the Public Service Act
Key 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
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, water distribution, and sewage systems. 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.