[ REPUBLIC ACT NO.

11659, March 21, 2022 ]

AN ACT AMENDING COMMONWEALTH ACT NO. 146, OTHERWISE KNOWN AS THE PUBLIC
SERVICE ACT, AS AMENDED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Declaration of Policy. - The State recognize the role of the private sector as one of the main engines
for national growth and development. It is hereby declared the policy of the State to encourage private
enterprise and expand the base of investment in the country, with the goal of providing efficient, reliable and
affordable basic services to all. These policies are fulfilled by: (a) ensuring effective regulation of public
services; (b) providing reasonable rate of return to public services; (c) rationalizing foreign equity restrictions
by clearly defining the term "public utilities"; and (d) instituting processes for the protection of national
security.

Section 2. Definition of Terms. - For the purposes of this Act, the terms below shall be defined as follows:

(a) Administrative Agency or Administrative Agencies, as the case may be, refers to relevant
govenrment agencies, to which the powers and duties of the Public Service Commission were
transferred pursuant to existing laws. All mention of the word "Commission" in this Act shall now
refer to this term;

(b) Certificates refer to any franchise, certificate of public convenience, certificate of public

convenience and necessity, concession, or any other appropriate form of authorization for the
operation of a public service, including a public utility, as may be applicable;

(c) Concession refers to a contract granting a private concessionaire the privilege to, among others,
finance, construct, manage, operate and/or maintain concession assets;

(d) Concessionaire refers to a person, corporation, firm or association awarded a concession;

(e) Critical Infrastructure refers to any public service which owns, uses, or operates systems and
assets, whether physical or virtual, so vital to the Republic of the Philippines that the incapacity or
destruction of such systems or assets would have a detrimental impact on national security, including
telecommunications and other such vital services as may be declared by the President of the
Philippines;

(f) Distribution of Electricity refers to the conveyance of electric power by a distribution utility

through its distribution system as defined by Section 4(n) of Republic Act No. 9136, otherwise known
as the "Electric Power Industry Reform Act of 2001", as amended;

(g) Foreign State-owned Enterprise refers to an entity in which a foreign State:

(i) directly or indirectly owns more than fifty-percent (50%) of the capital taking into account
both the voting rights and beneficial ownership;

(ii) control, through ownership interests, the exercise of more than fifty percent (50%) of the
voting rights; or

(iii) holds the power to appoint a majority of members of the board of directors or any other
equivalent management body;
(h) National Security refers to the requirements and conditions necessary to ensure the territorial
integrity of the country and the safety, security, and well-being of Filipino citizens;

(i) Petroleum and petroleum Product Pipeline Transmission Systems refer to the operation and
maintenance of pipeline transmission systems to ensure an uninterrupted and adequate supply and
transmission of petroleum and petroleum products to the public; and excludes petroleum pipeline
systems operated exclusively for private or own use, or incidental to the operations of a distinct
business;

(j) Philippine National refers to citizens, partnerships, associations, and corporations defined by

Section 3(a) of Republic Act No. 7042, otherwise known as the "Foreign Investments Act of 1991", as
amended;

(k) Public Utility Vehicles (PUVs) refer to internal combustion engine vehicles that carry passengers
and/or domestic cargo for a fee, offering services to the public, namely trucks-for-hire, UV express
service, public utility buses (PUBs), public utility jeepneys (PUJs), tricycles, filcabs, and
taxis: Provided, That transport vehicles accredited with and operating through transport network
corporations shall not be considered as public utility vehicles;

(l) Seaport refers to a place where ships may anchor or tie up for the purpose of shelter, repair, loading
or discharge of passengers or cargo, or for other such activities connected with water-borne
commerce, and including all the land and water areas and the structures, equipment and facilities
related to these functions, as defined by the charters of relevant authorities or agencies, such as the
Philippine Ports Authority, Subic Bay Metropolitan Authority, PHIVIDEC Industrial Estate Authority,
Cebu Port Authority, local government units, and other similar agencies or government bodies;

(m) Telecommunications refers to any process which enables a telecommunications entity to relay and

receive voice, data, electronic messages, written or printed matter, fixed or moving pictures, words,
music or visible or audible signals or any control signals of any design and for any purpose by wire,
radio or other electromagnetic, spectral, optical or technological means, as defined by Section 3(a) of
Republic Act No. 7925, otherwise known as the "Public Telecommunications Policy Act of the
Philippines", as amended, except passive telecommunications tower infrastructure and components,
such as, but not limited to, poles, fiber ducts, dark fiber cables, and passive telecommunications tower
infrastructure, as defined by the Department of Information and Communications Technology (DICT),
and value-added services, as defined in Section 3(h) of Republic Act No. 7925, as amended;

(n) Transmission of Electricity refers to the conveyance of electricity through the high voltage

backbone system, as defined by Section 4(cc) of Republic Act No. 9136, as amended;

(o) Water Pipeline Distribution Systems and Wastewater Pipeline Systems refer to the operation and
maintenance of water pipeline distribution systems to ensure an uninterrupted and adequate supply
and distribution of potable water for domestic and other purposes and the operation and maintenance
of wastewater pipeline systems, except desludging companies and septic tanks, to ensure public health
and safety, as regulated by Republic Act No. 6234, entitled "An Act Creating the Metropolitan
Waterworks and Sewerage System and Dissolving the National Waterworks and Sewerage Authority;
and for Other Purposes", as amended, and Presidential Decree No. 198, otherwise known as the
"Provincial Water Utilities Act of 1973", as amended; and

(p) Sewerage Pipeline Systems refers to the operation and maintenance of sewerage pipeline systems
to ensure public health and safety, as regulated by Republic Act No. 6234, as amended, and
Presidential Decree No. 198, as amended.
Section 3. Recognition of Transfer of Jurisdiction to Various Administrative Agencies. - All references to the
Public Service Commission in Commonwealth Act No. 146, as amended, shall pertain to any Administrative
Agency to which the powers and duties of the Public Service Commission were transferred by subsequent
laws, such as but not limited to:

(a) Civil Aeronautics Board (CAB);

(b) Civil Aviation Authority of the Philippines (CAAP);

(c) Department of Energy (DOE);

(d) Department of Environment and Natural Resources (DENR);

(e) DICT;

(f) Department of Transportation (DOTr);

(g) Energy Regulatory Commission (ERC);

(h) Land Transportation Franchising and Regulatory Board (LTFRB);

(i) Land Transportation Office (LTO);

(j) Local Water Utilities Administration (LWUA);

(k) Maritime Industry Authority (MARINA);

(l) Metropolitan Waterworks and Sewerage System (MWSS);

(m) National Telecommunication Commission (NTC);

(n) National Water Resources Board (NWRB);

(o) Philippine National Railways (PNR);

(p) Philippine Ports Authority (PPA); and

(q) Toll Regulatory Board (TRB).

Section 4. Section 13 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 13. (a) The Commission shall have jurisdiction and supervision over all public services, including
public utilities, and their franchises, equipment, and other properties, and in the exercise of its authority, it
shall have the necessary powers and the aid of public force: Provided, That public services, including public
utilities, owned or operated by government entities shall be regulated by the Commission in the same way as
privately-owned public services.

"Nothing in this Act shall be interpreted to diminish, limit, or restrict the authority of Congress from granting
franchises to public services, as may be provided by law. Any franchise or certificate necessary for the
operation of a public service shall be granted by Congress unless otherwise previously delegated by law to the
relevant Administrative Agencies.

"x x x

"(d) Public Utility. - Public Utility refers to a public service that operates, manages or controls for public use
any of the following:

"(1) Distribution of Electricity;

"(2) Transmission of Electricity;

"(3) Petroleum and Petroleum Products Pipeline Transmission Systems;

"(4) Water Pipeline Distribution Systems and Wastewater Pipeline Systems, including
sewerage pipeline systems;

"(5) Seaports; and

"(6) Public Utility Vehicles.

"All concessionaires, joint ventures and other similar entities that wholly operate, manage or control for public
use the sectors above are public utilities.

"Nothing in this Act shall be interpreted as a requirement for legislative franchise where the law does not
require any. No other person shall be deemed a public utility unless otherwise subsequently provided by law.

"(e) Upon the recommendation of the National Economic and Development Authority (NEDA), the President
may recommend to Congress the classification of a public service as a public utility on the basis of the
following criteria:

"(1) The person or juridical entity regularly supplies and transmits and distributes to the
public through a network a commodity or service of public consequence;

"(2) The commodity or service is a natural monopoly that needs to be regulated when the
common good so requires. For this purpose, natural monopoly exists when the market
demand for a commodity or service can be supplied by a single entity at a lower cost that by
two or more entities;

"(3) The commodity or service is necessary for the maintenance of life and occupation of the
public; and

"(4) The commodity or service is obligated to provide adequate service to the public on
demand.

"All public services, including those classified as public utilities under this Act, shall continue to be regulated
and supervised by the relevant Administrative Agencies under existing laws.

"A public service which is not classified as a public utility under this Act shall be considered a business
affected with public interest for purposes of Sections 17 and 18 of Article XII of the Constitution.
"Notwithstanding any law to the contrary, nationality requirements shall not be imposed by the relevant
Administrative Agencies on any public service not classified as a public utility.

"The NEDA shall provide periodic advice to Administrative Agencies on the proper application of the
constitutional and other legal restrictions to local and foreign-owned subcontractors, without putting
operational resiliency at risk."

Section 5. Section 15 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 15. x x x

"The Commission shall prescribe as a condition for the issuance of the certificate or authorization provided in
the preceding paragraph that the service can be acquired by the Republic of the Philippines or any
instrumentality thereof, or the issuing local government unit, upon payment of just compensation in
accordance with the pertinent laws, rules, and regulations on expropriation; and likewise, that the certificate or
authorization shall be valid only for a definite period of time and that the violation of any of theses conditions
shall, after hearing, result in the immediate cancellation of the certificate or authorization without the necessity
of any express action on the part of the issuing authority.

"x x x."

Section 6. Section 16 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 16. Proceedings of the Commission, upon notice and hearing. - The Commission shall have the
power, upon notice and hearing in accordance with the rules and provisions of this Act:

"(a) To issue certificates authorizing the operation of public service within the Philippines whenever the
Commission finds that the operation of the public service proposed and the authorization to do business will
promote the public interest in a proper and suitable manner: Provided, That any certificate authorizing the
operation, management or control of a public service shall only be issued to corporations, partnerships,
associations or joint stock companies that are constituted and organized under the laws of the Philippines.

"x x x

"(c) To fix and determine the fair and reasonable individual or joint rates, tolls, charges, classifications, tariffs
or schedules thereof, as well as commutation, mileage, kilometrage, and other special rates which shall be
imposed, observed, and followed thereafter by any public service when the public interest so
requires: Provided, That the Commission may, in its discretion, approve rates proposed by public services
provisionally and without necessity of any hearing; but it shall call a hearing thereon within fifteen (15) days,
thereafter, upon publication and notice to the affected parties in the territory affected, to ratify its prior
provisional approval or change, modify or later the approved rate based on public
interest: Provided, further, That in case the public service equipment of an operator is used principally or
secondarily for the promotion of a private business, the net profits of said private business shall be considered
in relation with the public service of such operator for the purpose of fixing the rates: Provided, finally, That
when the public interest requires, the Administrative Agency may establish and enforce a methodology for
setting rates, taking into account all relevant considerations, including the efficiency of the regulated public
service. The rates must be such as to allow the recovery of prudent and efficient costs and a reasonable rate of
return to enable the public service to operate viably and efficiently. The Administrative Agency may adopt
alternative forms consistent with internationally accepted rate-setting methodology. The adopted rate-setting
methodology shall ensure a reasonable price of the commodity or service and that the rates prescribed shall not
be discriminatory.

"This provision shall not be interpreted as mandating rate regulation nor amending or repealing: (1) laws
providing a deregulation policy, such as Republic Act No. 7925, otherwise known as the "Public
Telecommunications Policy Act of the Philippines', as amended; Republic Act No. 8479, otherwise known as
the 'Downstream Oil Industry Deregulation Act of 1998', as amended; Republic Act No. 9136, otherwise
known as the 'Electric Power Industry Reform Act of 2001', as amended; Republic Act No. 9295, otherwise
known as the 'Domestic Shipping Development Act of 2004', as amended; and Republic Act No. 6957,
otherwise known as the 'BOT law', as amended; and (2) regulations promulgated by these Administrative
Agencies to deregulate rates.

"x x x

"(l) To fix and determine proper and adequate rates of description of the property of any public service which
will be observed in a proper and adequate depreciation account to be carried for the protection of stockholders,
bondholders or creditors, in accordance with such rules, regulations, and forms of accounts as the Commission
may prescribe. Said rates shall be sufficient to provide the amounts required over and above the expense of
maintenance to keep such property in a state of efficiency corresponding to the progress of the industry. Each
public service shall conform its depreciation accounts to the rates so determined and fixed, and, as may be
required by the proper Administrative Agency, shall set aside the moneys so provided for out of its earnings
and carry the same in a depreciation fund. The income from investments of money in such fund shall likewise
be carried in such fund. This fund shall not be expended otherwise than for depreciation, improvements, new
constructions, extensions or additions to the property of such public service.

"x x x

"(p) To suspend or revoke any certificate issued under the provisions of this Act when the holder thereof has
failed for three (3) consecutive years the annual performance audit conducted by an independent evaluation
team in accordance with the metrics to be set by the Administrative Agency."

Section 7. Section 17 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 17. Proceedings of Commission without previous hearing. - The Commission shall have power,
without previous hearing, subject to established limitations and exceptions and saving provisions to the
contrary:

"(a) To investigate, upon its own initiative, or upon complaint in writing, any matter
concerning any public service as regards matters under its jurisdiction; to require any public
service to furnish safe, adequate, and proper service as the public interest may require and
warrant; to enforce compliance with any standard, rule, regulation, order or other requirement
of this Act or of the Commission, and to prohibit or prevent any public service as herein
defined from operating without having first secured a certificate and require existing public
services to pay the fees provided for in this Act for the issuance of the certificate, under the
penalty, at the discretion of the Commission, of the revocation and cancellation of any
acquired right.

"(b) To require any public service to pay the actual expenses incurred by the Commission in
any investigation if it shall be found in the same that any rate, toll, charge, schedule,
regulation, practice, act or service thereof is in violation of any provision of this Act or any
certificate, order, rule, regulation or requirement issued or established by the Commission.
 The Commission may also assess against any public service reasonable costs with reference
to such investigation.

"x x x

"(g) To require any public service to keep its books, records, and accounts so as to afford an
intelligent understanding of the conduct of its business and to that end to require every such
public service of the same class to adopt a uniform system of accounting. Such system shall
conform to any system approved and confirmed by the Commission on Audit.

"x x x."

Section 8. Section 18 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 18. It shall be unlawful for any individual, partnership, association, corporation or joint-stock
company, their lessees, trustees, or receivers appointed by any court whatsoever, or any municipality,
province, or other department of the Government of the Philippines, to engage in any public service business
without having first secured from the Commission a certificate as provided for in this Act, except grantees of
legislative franchises expressly exempting such grantee from the requirement of securing a certificate from this
Commission, as well as concerned at present existing expressly exempted from the jurisdiction of the
Commission, either totally or in part, by the provisions of section thirteen of this Act."

Section 9. Section 19 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 19. Unlawful act. - It shall be unlawful for any public service:

"x x x

"(c) To refuse or neglect, when requested by the Postmaster General or his authorized representative, to carry
public mail on the regular trips of any public land transportation service maintained or operated by any such
public service, upon such terms and conditions and for a consideration in such amounts as may be agreed upon
between the Postmaster General and the public service carrier or fixed by the Commission in the absence of an
agreement between the Postmaster General and the carrier. In case the Postmaster General and the public
service carrier are unable to agree on the amount of the compensation to be paid for the carriage of the mail,
the Postmaster General shall forthwith request the Commission to fix a just and reasonable compensation for
such carriage and the same shall be promptly fixed by  the Commission in accordance with section sixteen of
this Act.

"(d) To refuse or neglect, when requested by the Administrative Agency to urgently use, deliver or render the
public service for the purpose of avoiding further loss on human, material, economic, or environment during a
state of calamity."

Section 10. Section 20 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 20. Acts requiring the approval of the Commission. - Subject to established limitations and
exceptions and saving provisions to the contrary, it shall be unlawful for any public service or for the owner,
lessee or operator thereof, without the approval and authorization of the Commission previously had:
"(a) To adopt, establish, fix, impose, maintain, or collect or carry into effect any individual or joint rates,
commutation, mileage or other special rate, toll, fare,charge, classification or itinerary. The Commission shall
approve only those that are prudent and efficient and not any that are unjustly discriminatory or unduly
preferential, only upon reasonable notice to the public services and other parties concerned . giving them a
reasonable opportunity to be heard, and the burden of the proof to show that the proposed rates or regulation
are prudent and efficient shall be upon the public service purposing the same.

"(b) To establish, construct, maintain, or operate new units or extend existing facilities or make any other
addition to or general extension of the service: Provided, That only assets that are useful and necessary for the
provision of the public service shall form part of the rate base as determined and approved by the
Administrative Agency: Provided, further, That construction of such asset and implementation of such project
may be allowed for emergency and other extraordinary cases: Provided, finally, That the public service
provider files for approval of such extension or construction of facilities within sixty (60) days from
implementation of the project, and without prejudice to the final determination by the Administrative Agency
if the said asset is useful and necessary for inclusion in the rate base.

"The Administrative Agency may issue regulations prescribing a shorter period than that provided in the
preceding paragraphs only in cases of emergency, as may be certified by such Administrative Agency,
requiring the installation, construction or maintenance of units, facilities or equipment.

"x x x

"(e) To issue any share of stock without par value: Provided, That it shall be the duty of the Commission, after
hearing, to approve any such time when satisfied that the same is to be made in accordance with law.

"x x x

"(g) To sell, alienate, mortgage, encumber or lease its property, franchises, certificates, privileges, or rights, or
any part thereof, or merge or consolidate its property, franchise, privileges or rights, or any part thereof, with
those of any other public service. The approval therein required shall be given, after notice to the public and
after hearing the persons interested at a public hearing, if it be shown that there are just and reasonable grounds
for making the mortgage or encumbrance, for liabilities of more than one year maturity, or the sale, alienation,
lease, merger, or consolidation to be approved, and that the same are not detrimental to the public interest, and
in case of sale, the date on which the same is to be consummated shall be fixed in the order of
approval: Provided, however, That nothing herein contained shall be construed to prevent the transaction from
being negotiated or completed before its approval or to prevent the sale, alienation, or lease by any public
service of any of its property in the ordinary course of its business: Provided, finally, That the need for
approval of the sale, alienation, mortgage, encumbrance or lease will be required only for properties of the
public service that are used and useful in the delivery of the required public service.

"x x x

"(i) To sell, alienate or in any matter transfer shares of its capital stock to any alien if the result of that sale,
alienation, or transfer in itself or in connection with another previous sale shall be the reduction to less than
sixty percent (60%) of the capital stock belonging to Philippine Nationals in the operation of a public utility as
required by the Constitution. Such sale, alienation or transfer shall be void and of no effect and shall be
sufficient cause for ordering the cancellation of the certificate.

"x x x."
Section 11. Section 21 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 21. In the absences of any specific fine or penalty imposed under the Charter of the Administrative
Agency or the special law governing the particular public service, any public service violating or failing to
comply with the terms and conditions of any certificate or any order, decision or regulation of the Commission
shall be subject to a fine of not lower than Five thousand pesos (P5,000.00) but not exceeding Two million
pesos (P2,000,000.00) per day for every day during which such default or violation continues; and the
Commission is hereby authorized and empowered to impose such fine, after due notice and
hearing: Provided, That should a lesser fine or penalty be imposed under the Charter of the Administrative
Agency or the special law governing the public service, the amount of fine or penalty provided for under this
section shall apply.

"In cases where rates collected by the public service exceed the rates authorized by the Administrative Agency,
the Administrative Agency may order a refund to consumers in lieu of or in addition to the fine or penalty
imposed under this Act or the special law governing the public service.

"The fines so imposed shall be paid to the Government of the Philippine through the Commission, and failure
to pay the fine or comply with the order to refund in any case within the time specified in the order or decision
of the Commission shall be deemed good and sufficient reason for the suspension of the certificate of said
public service until payment shall be made or the order is complied with. Payment may also be enforced by
appropriate action brought in a court of competent jurisdiction. The remedy provided in this section shall not
be a bar to, or affect any other remedy provided in this Act but shall be cumulative and additional to such
remedy or remedies."

Section 12. Section 23 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"Section 23. Any public service corporation that shall perform, commit, or do any act or thing herein forbidden
or prohibited or shall neglect, fail, or omit to do or perform any act or thing herein required to be done or
performed, shall be punished, after notice and hearing, by a fine not exceeding Two million pesos
(P2,000,000.00), or by imprisonment of not lower than six (6) years and one (1) day and not higher than
twelve (12) years, or both, at the discretion of the court.

"In case the services of any entity engaged in the operation and management of critical infrastructure are
interrupted, it shall act on customer complaints within ten (10) days, or provide an action plan to be
accomplished within a reasonable period, from the date the complaint, written or otherwise, was received. For
this purpose, entities engaged in the operation and management of critical infrastructure shall file a monthly
report to the appropriate regulatory agency detailing the service interruptions that occurred during the covered
period, the complaints lodged before it, and the actions taken on each complaint."

Section 13. Section 24 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"Section 24. Any person, including juridical persons whether foreign or domestic, who shall knowingly and
willfully perform, commit, or do, or participate in performing, committing, or doing, or who shall knowingly
and willfully cause, participate, or join with others in causing any public service corporation or company to do,
perform, or commit, or who shall advise, solicit, persuade, or knowingly and willfully instruct, direct, or order
any officer, agent or employee of any public service corporation or company to perform, commit, or do any act
or thing forbidden or prohibited by this Act, shall be punished, after notice and hearing, by a fine of not
exceeding Two million pesos (P2,000,000.00), or imprisonment of not lower than six (6) years and one (1) day
and not higher that twelve (12) years, or both, at the discretion of the court.
"When the entities involved are juridical persons, the penalty of imprisonment shall be imposed on its officers,
directors, or employees holding managerial positions, who are knowingly and willfully responsible for such
violation."

Section 14. Section 25 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"Section 25. Any person, including juridical persons whether foreign or domestic, who shall knowingly and
willfully neglect, fail, or omit to do or perform, or who shall knowingly and willfully cause or join or
participate with others in causing any public service corporation or company to neglect, fail, or omit to do or
perform, or who shall advise, solicit, or persuade, or knowingly and willfully instruct, direct, or order any
officer, agent or employee of any public service corporation or company to neglect, fail, or omit to do any act
or thing required to be done by this Act, shall be punished, after notice and hearing, by a fine not exceeding
Two million pesos (P2,000,000.00) or by imprisonment of not lower than six (6) years and one (1) day and not
higher that twelve (12) years, or both, at the discretion of the court. When the entities involved are juridical
persons, the penalty of imprisonment shall be imposed on its officers, directors, or employees holding
managerial positions, who are knowingly and willfully responsible for such violation."

Section 15. Section 26 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"SEC. 26. Any person who shall destroy, injure, or interfere with any apparatus or appliance owned or
operated by or in charge of the Commission or its agents, shall be deemed guilty of a misdemeanor and upon
conviction shall be punished, after notice and hearing, by a fine of the amount equivalent to the actual market
value of the apparatus or appliance destroyed or injured plus a fine not exceeding Two million pesos
(P2,000,000.00) or imprisonment of not lower than six (6) years and one (1) day and not higher than twelve
(12) years, or both, at the discretion of the court."

Section 16. Section 28 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"SEC. 28. Violations of the orders, decisions, and regulations of the Commission and of the terms and
conditions of any certificate issued by the Commission and violations of the provisions of this Act shall
prescribe in accordance with Act No. 3326, entitled 'An Act to Establish Periods of Prescription for Violations
Penalized by Special Acts and Municipal Ordinances and to Provide When Prescription Shall Begin to Run', as
amended."

Section 17. Section 29 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"SEC. 29. All hearings and investigations before the Commission shall be governed by rules adopted by the
Commission, and in the conduct thereof the Commission shall not be bound by the technical rules of legal
evidence: Provided, That the Hearing Officer may summarily punish for contempt by a fine not exceeding
Two thousand pesos (P2,000.00) or by imprisonment not exceeding ten days, or both, any person guilty of
misconduct in the presence of the Hearing Officer or so near the same as to interrupt the hearing or session or
any proceedings before them, including cases in which a person present at a hearing, session, or investigation
held by the Hearing Officer refuses to be sworn as a witness or to answer as such when lawfully required to do
so. To enforce the provisions of this section, the Commission may, if necessary, request the assistance of the
municipal or city police for the execution of any order made for said purpose."

Section 18. Section 30 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"SEC. 30. (a) The Commission may issue subpoenas and subpoenas duces tecum, for witnesses in any matter
or inquiry pending before the Commission and require the production of all books, papers, tariffs, contracts,
agreements, and all other documents, which the Commission may deem necessary in any proceeding. Such
process shall be issued under the seal of the Commission, signed by one of the Hearing Office, and may be
served by any person of full age, or by registered mail. Disobedience to or failure to comply with such
subpoena, shall constitute indirect contempt, and may be instituted in the manner as provided in the Rules of
Court before the appropriate court.

"(b) Any person who shall neglect or refuse to answer any lawful inquiry or produce before the Commission,
books, papers, tariffs, contracts, agreements, and documents or other things called for by said Commission, if
in his power to do so, in obedience to the subpoena or lawful inquiry of the Commission upon conviction
thereof by a court of competent jurisdiction, shall be punished by a fine not exceeding Thirty thousand pesos
(P30,000.00) or by imprisonment not exceeding six (6) months, or both, at the discretion of the court.

"(c)  The officials and Hearing Officers of the Commission shall have the power to administer oaths in all
matters under the jurisdiction of the Commission.

"x x x

"(e) Witnesses appearing before the Commission in obedience to subpoena or subpoena duces tecum shall be
entitled to receive the same fees and mileage as witness attending regional trial courts in civil cases.

"(f) Any person who shall obstruct the Commission or either of the Hearing Officers while engaged in the
discharge of official duties, or who shall conduct himself in a rude, disrespectful or disorderly manner before
the Commission or either of the Hearing Officers, while engaged in the discharge of official duties, or shall
orally or in writing be disrespectful to, offend or insult either of the Hearing Officers on occasion or by reason
of the performance of his official duties, upon conviction thereof by a court of competent jurisdiction, shall be
punished for each offense by a fine not exceeding Thirty thousand pesos (P30,000.00), or by imprisonment not
exceeding six (6) months, or both, at the discretion of the Court."

Section 19. Section 32 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"SEC. 32. The Commission may, i any investigation or hearing, by its order in writing, cause the deposition of
witnesses residing within or without the Philippines to be taken in the manner and under the conditions
prescribed by the Rules of Court. Where witnesses reside in places distant from Manila and it would be
inconvenient and expensive for them to appear personally before the Commission, the Commission may, by
proper order, commission any clerk of the Regional Trial Court of the Philippines to take the deposition of
witnesses in any case pending before the Commission. It shall be the duty of the official so commissioned, to
designate promptly a date or dates for the taking of such deposition, giving timely notice to the parties, and on
said date to proceed to take the deposition, reducing it to writing. After the depositions have been taken, the
official so commissioned shall certify to the depositions taken and forward them as soon as possible to the
Commission. It shall be the duty of the respective parties to furnish stenographers for taking and transcribing
the testimony taken.

"The Commission may also, by proper order, authorize any of the attorneys of the legal division or division
chiefs of the Commission, if they be lawyers, to hear and investigate any case filed with the Commission and
in connection therewith to receive such evidence as may be material thereto. At the conclusion of the hearing
or investigation, the attorney or division chief so authorized shall submit the evidence received by him to the
Commission to enable the latter to render its decision."

Section 20.  Section 35 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:
"SEC. 35. Any order, ruling, or decision of the Administrative Agency may be appealed in the manner and
within the period prescribed under the Rules of Court and other pertinent laws."

Section 21. Section 38 of Commonwealth Act No. 146, as amended, is hereby amended to read as follows:

"SEC.38. The chief of the legal division or any other attorneys of the Commission shall represent the same in
all judicial proceedings. It shall be the duty of the Solicitor General to represent the Commission in any
judicial proceeding if, for special reasons, the Hearing Officer shall request has intervention."

Section 22. Section 40 of Commonwealth Act No. 146, as amended, is hereby further amended to read as
follows:

"SEC. 40. Administrative Fees and Charges. - Administrative Agency may collect from any public service,
including any public utility, reasonable fees and charges, and impose appropriate penalties and fines as
provided by law: Provided, That such fees, charges, penalties and fines may be adjusted to its present value
every five (5) years using the Consumer Price Index (CPI) as published by the Philippine Statistics Authority
(PSA)."

Section 23. Powers of the President to Suspend or Prohibit Transaction or Investment. - In the interest of
national security, the President, after review, evaluation and recommendation of the relevant government
department or Administrative Agency, may, within sixty (60) days from the receipt of such recommendation,
suspend or prohibit any proposed merger or acquisition transaction, or any investment in a public service that
effectively results in the grant of control, whether direct or indirect, to a foreigner or a foreign corporation.

The Philippine Competition Commission (PCC) may be consulted on all matters relating to mergers and
acquisitions.

The NEDA shall promulgate rules and regulations to implement the provisions of this section.

Section 24. Investments by an Entity Controlled by or Acting on Behalf of the Foreign Government, or

Foreign State-owned Enterprises. - An entity controlled by or acting on behalf of the foreign government or
foreign state-owned enterprises shall be prohibited from owning capital in any public service classified as
public utility or critical infrastructure: Provided, That the prohibition shall apply only to investments made
after the effectivity of this Act: Provided, further, That foreign state-owned enterprises which own capital prior
to the effectivity of this law are prohibited from investing in additional capital upon the effectivity of this
Act: Provided, finally, That notwithstanding the immediately preceding clause, the sovereign wealth funds and
independent pensions funds of each state may collectively own up to thirty percent (30%) of the capital of such
public services.

In the interest of national security, an entity controlled by or acting on behalf of the foreign government or
foreign-owned enterprises shall not make any date or information disclosure, nor extend assistance, support or
cooperation to any foreign government, instrumentalities or agents.

The NEDA shall promulgate rules and regulations to implement the provisions of this section.

Section 25. Reciprocity Clause. - Foreign nationals shall not be allowed to own more than fifty percent (50%)
of the capital of entities engaged in the operation and management of critical infrastructure unless the country
of such foreign national accords reciprocity to Philippine Nationals as may be provided by foreign law, treaty
or international agreement. Reciprocity may be satisfied by according rights of similar value in other economic
sectors. The NEDA shall promulgate rules and regulations for this purpose.
Unless otherwise provided by law, or by any international agreement, a public service shall employ a foreign
national only after the determination of non-availability of a Philippine National who is competent, able and
willing to perform the services for which the foreign national is desired.

Any foreign national seeking admission to the Philippines for employment purposes and any public service
which desires to engage a foreign national for employment in the Philippines must obtain an employment
permit pursuant to Presidential Decree No. 442, otherwise known as the "Labor Code of the Philippines", as
amended.

Public services employing foreign nationals issued employment permits in industries to be determined by the
Department of Labor and Employment (DOLE) shall implement an understudy/skills development program to
ensure the transfer of technology/skills to Filipinos, whether next-in-rank or otherwise, with the potential of
succeeding the foreign national in the same establishment or its subsidiary, within a specific period as may be
determined by the DOLE, upon consultation with relevant government agencies and industry experts.

Section 26. Information Security. - Persons and companies engaged in the telecommunications business shall
obtain and maintain certifications from an accredited certification body attesting to compliance with relevant
ISO standards on information security, as prescribed by the DICT: Provided, That the maintenance of these
certifications shall be a continuing qualification for retention of franchise or other authority to
operate: Provided, further, That this section shall not apply to micro, small and medium enterprises under
Republic Act No. 6977, otherwise known as the "Magna Carta for Micro, Small and Medium Enterprises
(MSMEs)", as amended.

Section 27. Conduct of Regular Studies and Comprehensive Baseline Survey. - The NEDA shall conduct
regular studies on whether regulatory reform is warranted in a public service sector to improve consumer
welfare and to submit its recommendation to Congress.

The NEDA, in coordination with the relevant government agencies and local government units, shall conduct a
comprehensive baseline survey of public services governance within six (6) months from the effectivity of this
Act. Copies of the results of said survey shall be furnished to the Congress, the NEDA and the PCC. ℒαwρhi ৷

Section 28. Congressional Oversight and Periodic Review. - A Congressional Oversight Committee shall be
created that will monitor and evaluate the implementation of this Act every five (5) years commencing from
the effectivity of this Act. The Congressional Oversight Committee shall be composed of the Chairperson of
the Senate Committee on Public Services, the Chairperson of the House of Representatives Committee on
Economic Affairs, and representatives of other relevant congressional committee.

Section 29. Performance Audit. - Administrative agencies must ensure the annual conduct of performance
audit by an independent evaluation team to monitor cost, the quality of services provided to the public, and the
ability of the public service provider to immediately and adequately respond to emergency
cases: Provided, That in the case of critical infrastructure and public utilities, the performance audit shall
include risk assessment, emergency response, and cybersecurity, among others. Metrics for various types of
services must be established to sustain reliability, security, and safety of the public.

Section 30. Implementing Rules and Regulations. - All Administrative Agencies under Section 3 of this Act
shall, in coordination with the NEDA, promulgate rules and regulations to implement the provisions of this Act
within six (6) months from the effectivity of this Act.

Section 31. Interpretation. - This Act shall be subject to and consistent with the regulatory powers of the State
to promote public interest in Article IX-C, Section 4 and Article XII, Section 17 of the Constitution.
No franchise, certificate, concession, or authorization granted by the appropriate Administrative Agencies
pursuant to this Act shall be: (a) exclusive in character; (b) for a longer period than fifty (50)
years: Provided, That if a public service has maintained an exemplary record in the delivery of services, and
has made substantial investments on infrastructure, technology or equipment for its operations, such
performance and size of investment shall be taken into consideration, and the application for renewal of the
franchise, certificate, concession or authorization of the public service shall be given priority by the
appropriate Administrative Agencies; and (c) granted except under the condition that it shall be subject to
amendment, alteration, or repeal by Congress when the public interest so requires.

Section 32. Non-Impairment of Existing Agreements. - The application ad implementation of the pertinent

provisions of this Act shall not impair vested rights or obligations of contracts. Current and subsisting
concession agreements and other similar contracts of juridical persons with government agencies or
government-owned and -controlled corporations covering activities hereunder classified as public utilities shall
remain valid and in force in accordance with the existing terms and conditions the parties agreed to thereunder
until the expiration or termination thereof.

Section 33. Separability Clause. - Should any portion or provision of this Act be declared unconstitutional, the
remainder of this Act or any provision not affected thereby shall remain in force and effect.

Section 34. Repealing Clause. - All laws, decrees, orders, rules and regulations, or other issuances or parts
thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly.

The provisions on limitation on foreign ownership in the following laws are hereby amended or modified:

(a) Republic Act No. 6957, entitled, "An Act Authorizing the Financing, Construction, Operation and
Maintenance of Infrastructure Projects by the Private Sector, and for Other Purposes", as amended; 

(b) Republic Act No. 9295, otherwise known as the "Domestic Shipping Development Act of 2004",
as amended;

(c) Republic Act No. 9497, otherwise known as the "Civil Aviation Authority Act of 2008", as
amended;

(d) Republic Act No. 776, otherwise known as the "The Civil Aeronautics Act of the Philippines", as
amended;

(e) Presidential Decree No. 1112, otherwise known as the "Toll Operation Decree", as amended;

(f) Department of Transportation Department Order No. 2018-13, as amended, on the classification of
the Transport Network Companies and Transportation Network Vehicles Service as public utilities;
and

(g) Republic Act No. 7925, otherwise known as the "Public Telecommunications Policy Act of the
Philippines", as amended, on the classification of all telecommunications entities as public utilities.

Nothing herein shall be construed as amending or repealing laws and administrative regulations deregulating
or delisting services, industries and/or rates.

Section 35. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official
Gazette or in a newspaper of general circulation.
Approved,

(SGD.) VICENTE C. SOTTO III (SGD.) LORD ALLAN JAY Q. VELASCO

President of Senate Speaker of the House of Representatives

This Act which is a consolidation of House Bill No. 78 and Senate Bill No. 2094 was passed by the House of
Representatives and the Senate of the Philippines on February 2, 2022.

(SGD.) MYRA MARIE D. (SGD.) MARK LLANDRO L. MENDOZA

VILLARICA Secretary General House of Representatives
Secretary of Senate

Approved: MAR 21 2022

(SGD.) RODRIGO ROA DUTERTE

President of the Philippines