I. General Considerations Transportation Law
I. General Considerations
A. Public Utilities
1987 Constitution, Article XIISection 11
No franchise, certificate, or any other form of authorization for the operation of a public utilityshall be granted except to citizens of thePhilippines or to corporations or associationsorganized under the laws of the Philippines, at leastsixty per centum of whose capital is owned by suchcitizens; nor shall such franchise, certificate, orauthorization be exclusive in character or for alonger period than fifty years. Neither shall anysuch franchise or right be granted except under thecondition that it shall be subject to amendment,alteration, or repeal by the Congress when thecommon good so requires. The State shallencourage equity participation in public utilities bythe general public. The participation of foreigninvestors in the governing body of any public utilityenterprise shall be limited to their proportionateshare in its capital, and all the executive andmanaging officers of such corporation orassociation must be citizens of the Philippines.
In times of national emergency, when the publicinterest so requires, the State may, during theemergency and under reasonable terms prescribedby it, temporarily take over or direct the operationof any privately-owned public utility or businessaffected with public interest.
The State may, in the interest of national welfareor defense, establish and operate vital industriesand, upon payment of just compensation, transferto public ownership utilities and other privateenterprises to be operated by the Government.
The State shall regulate or prohibit monopolieswhen the public interest so requires. Nocombinations in restraint of trade or unfaircompetition shall be allowed.
The Public Service Law, CA 146, as amendedSec. 13(b)
The term "public service" includes every personthat now or hereafter may own, operate, manage,or control in the Philippines, for hire orcompensation, with general or limited clientele,whether permanent, occasional or accidental, anddone for general business purposes, any commoncarrier, railroad, street railway, traction railway,sub-way motor vehicle, either for freight orpassenger, or both with or without fixed route andwhether may be its classification, freight or carrierservice of any class, express service, steamboat orsteamship line, pontines, ferries, and water craft,engaged in the transportation of passengers orfreight or both, shipyard, marine railways, marinerepair shop, [warehouse] wharf or dock, ice plant,ice-refrigeration plant, canal, irrigation system,gas, electric light, heat and power water supplyand power, petroleum, sewerage system, wire orwireless communications system, wire or wirelessbroadcasting stations and other similar publicservices: Provided, however, That a personengaged in agriculture, not otherwise a publicservice, who owns a motor vehicle and uses itpersonally and/or enters into a special contractwhereby said motor vehicle is offered for hire orcompensation to a third party or third partiesengaged in agriculture, not itself or themselves apublic service, for operation by the latter for alimited time and for a specific purpose directlyconnected with the cultivation of his or their farm,the transportation, processing, and marketing of agricultural products of such third party or thirdparties shall not be considered as operating apublic service for the purposes of this Act.
WHAT IS A PUBLIC UTILITY?Kilusang Mayo Uno Labor Center v. Garcia(1994)
Public utilities are privately owned and operatedbusinesses whose services are essential to thegeneral public. They are enterprises which speciallycater to the needs of the public and conduce totheir comfort and convenience. As such, publicutility services are impressed with public interestand concern. When, therefore, one devotes hisproperty to a use in which the public has aninterest, he, in effect grants to the public aninterest in that use, and must submit to the controlby the public for the common good, to the extentof the interest he has thus created.
Albano v. Reyes (1989)
Franchises issued by Congress are not requiredbefore each and every public utility may operate.A public utility is a business or service engaged inregularly supplying the public with somecommodity or service of public consequence, suchas electricity, gas, water, transportation, telephoneor telegraph services. Apart from statutes whichdefine public utilities that are within the purview of such statutes, it would be difficult to construct adefinition of a public utility which would fit everyconceivable case. As its name indicates, however,the term public utility implies a public use andservice to the public.
When it involves a commodity or service of public consequence.
A public utility is a partly nationalized businessendeavor
It is a business affected with the public interest.(“national emergency”; “general welfare”; “common good”)
UP LAW BAROPS 2007 ONE UP LAW
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