PU B L I C UT I L I T I ES

GROUP 4

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AGENDA

• PART 1: (10 min)

– Public UTILITIES vis-à-vis Public SERVICE vis-à-vis Public INTEREST
– Constitutional Provisions and Limitations
– Characteristics of Public Utilities
• PART II: Common Carriers as Public Utilities (10 min)
• PART III: Other Public Utilities (Telco, Electricity, Water) (10 min)
• PART IV: Q&A (5 min)
 PA R T 1
INTRODUCTION

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 PUBLIC UTILITY

• A business or service engaged in regularly supplying the public with some commodity or
service of public consequence (e.g. electricity, gas, water, transportation, telephone or telegraph
services).(NAPOCOR vs. CA, G.R. NO. 112702 & 113613, September 26, 1997)

• Implies public use and service. (MCWD vs.Adala, G.R. NO. 168914, July 4, 2007)
 PUBLIC SERVICE UNDER PUBLIC
SERVICE ACT
Section 13, (b), Commonwealth Act No. 146:
“The term “public service” includes every person that now or hereafter may own, operate, manage, or
control in the Philippines, for hire or compensation, with general or limited clientele, whether permanent,
occasional or accidental, and done for general use business purposes, any common carrier, railroad, street
railway, traction railway, sub-way motor vehicle, either for freight or passenger, or both with or without
fixed route and whatever may be its classification, freight or carrier service of any class, express service,
steamboat, or steamship line, pontines, ferries, and water craft, engaged in the transportation of passengers
or freight or both, shipyard, marine railway, marine repair shop, wharf or dock, ice plant, ice-refrigeration
plant, canal, irrigation system, gas, electric light, heat and power, water supply and power, petroleum,
sewerage system, wire or wireless communications system, wire or wireless broadcasting stations and
other similar public services:
 PUBLIC SERVICE UNDER PUBLIC
SERVICE ACT
Section 13, (b), Commonwealth Act No. 146: (cont’d)
Provided, however, That a person engaged in agriculture, not otherwise a public service, who owns a motor
vehicle and uses it personally and/or enters into a special contract whereby said motor vehicle is offered
for hire or compensation to a third party or third parties engaged in agriculture, not itself or themselves a
public service, for operation by the latter for a limited time and for specific purpose directly connected
with the cultivation of his or their farm, the transportation, processing, and marketing of agricultural
products of such third party or third parties shall not be considered as operating a public service for the
purpose of this Act.”
Jurisprudence

Luzon Stevedoring Inc. vs. Public Service MCWD vs. Adala

Commission (G.R. No. L-5458, September (G.R. NO. 168914, July 4, 2007)
16, 1953)
Water districts fall under the term “public
• Petitioners were engaged in stevedoring or utility” because its primary function is to
lighterage and harbor towage business
construct, maintain and operate water
• Respondent charge freightage on a unit price reservoirs and waterworks for the purpose of
with rates supplying water to the inhabitants as well as
• SC: Petitioner was a public utility even if it consolidate and centralize all water supplies
was serving a limited clientele and drainage systems in the Philippines
 Elements to be considered a
public service
1. Person must own, operate, manage or control in the Philippines public services which may
include distribution of goods or rendering of services to the public
2. The ownership, operation, management or control must be for hire or compensation
3. The ownership, operation, management or control must be done for general business
purposes.
 Characteristics of a public
service
1. It is not required that the business is permanent because the operation may be “permanent,
occasional or accidental”
2. Business may be with general or limited clientele

• Carriers are considered public service if:

1. They transport either freight or passenger or both
2. Their service is with or without fixed route
3. Their classification may be freight or carrier service of any class, express service, steamboat
or steamship line, pontines, ferries and watercraft
 Public Utility Common Carrier

A business or service engaged The person or entity lets

in regularly supplying the public out its services to carry
with some commodity or or transport passenger
service of public consequence or goods or both, by land,
such as electricity, gas, water, Public service water, air, for
transportation, telephone or Public use compensation and offering
telegraph services. (NAPOCOR v. Public interest their services to the
CA, G.R. Nos. 112702 & 113613, public.
September 26, 1997) (Art. 1732, NCC)
 WHAT ARE NOT CONSIDERED AS
PUBLIC UTILITY BY LAW?
• Republic Act No. 9136, Electric Power Reform Act of 2001 (EPIRA Law) – power
generators such as independent power producers are not considered public utilities
• 3rd par., Section 29, EPIRA Law- “Any law to the contrary notwithstanding, supply of electricity
to the contestable market shall not be considered a public utility operation. For this
purpose, any person or entity which shall engage in the supply of electricity to the
contestable market shall not be required to secure a national franchise.”
 CONSTITUTIONAL PROVISIONS
ARTICLE XII - NATIONAL ECONOMY AND PATRIMONY

• Section 1. The goals of the national economy are a more equitable distribution of opportunities, income,
and wealth; a sustained increase in the amount of goods and services produced by the nation for the
benefit of the people; and an expanding productivity as the key to raising the quality of life for all, especially
the underprivileged.
The state shall promote industrialization and full employment based on sound agricultural development and
agrarian reform, through industries that make full and efficient use of human and natural resources, and
which are competitive in both domestic and foreign markets. however, the state shall protect Filipino
enterprises against unfair foreign competition and trade practices.
In the pursuit of these goals, all sectors of the economy and all regions of the country shall be given
optimum opportunity to develop. private enterprises, including corporations, cooperatives, and similar
collective organizations, shall be encouraged to broaden the base of their ownership.
 CONSTITUTIONAL PROVISIONS
ARTICLE XII - NATIONAL ECONOMY AND PATRIMONY

• Section 6. The use of property bears a social function, and all economic agents shall contribute to the common good.
Individuals and private groups, including corporations, cooperatives, and similar collective organizations, shall have the
right to own, establish, and operate economic enterprises, subject to the duty of the State to promote distributive
justice and to intervene when the common good so demands.
• Section 11. No franchise, certificate, or any other form of authorization for the operation of a public utility shall be
granted except to citizens of the Philippines or to corporations or associations organized under the laws of the
Philippines at least sixty per centum of whose capital is owned by such citizens, nor shall such franchise, certificate, or
authorization be exclusive in character or for a longer period than fifty years. Neither shall any such franchise or right
be granted except under the condition that it shall be subject to amendment, alteration, or repeal by the Congress when
the common good so requires. The State shall encourage equity participation in public utilities by the general public. The
participation of foreign investors in the governing body of any public utility enterprise shall be limited to their
proportionate share in its capital, and all the executive and managing officers of such corporation or association must be
citizens of the Philippines.
 CONSTITUTIONAL PROVISIONS
ARTICLE XII - NATIONAL ECONOMY AND PATRIMONY

 Section 17. In times of national emergency, when the public interest so requires, the State may, during the
emergency and under reasonable terms prescribed by it, temporarily take over or direct the operation of
any privately owned public utility or business affected with public interest.
 Section 18. The State may, in the interest of national welfare or defense, establish and operate vital
industries and, upon payment of just compensation, transfer to public ownership utilities and other private
enterprises to be operated by the Government.
 Section 19. The State shall regulate or prohibit monopolies when the public interest so requires. No
combinations in restraint of trade or unfair competition shall be allowed.
 Section 22. Acts which circumvent or negate any of the provisions of this Article shall be considered
inimical to the national interest and subject to criminal and civil sanctions, as may be provided by law.
Constitutional Limitations
• No franchise, certificate, or any other form of authorization for • All the executive and managing officers of such corporation or
the operation of a public utility shall be granted except to association must be citizens of the Philippines
citizens of the Philippines or to corporations or associations
• In times of national emergency, when the public interest so
organized under the laws of the Philippines at least sixty per
requires, the State may, during the emergency and under
centum of whose capital is owned by such citizens
reasonable terms prescribed by it, temporarily take over or
• No franchise, certificate or authorizations shall be exclusive in direct the operation of any privately owned public utility or
character; business affected with public interest
• No franchise, certificate or authorization shall be for a longer • The State may, in the interest of national welfare or defense,
period than fifty years upon payment of just compensation, transfer to public
ownership utilities and other private enterprises to be operated
• A franchise or right shall be granted only under the condition
by the Government
that it shall be subject to amendment, alteration, or repeal by
the Congress when the common good so requires; • The State shall regulate or prohibit monopolies when the
public so requires
• The State shall encourage equity participation in public utilities
by the general public; • Combinations in restraint of trade or unfair competition are
not allowed
• The Participation of foreign investors in the governing body of
any public utility enterprise shall be limited to their
proportionated share in its capital;
REGULATORY AGENCIES
The Public Service Commission created under the Public Service Act (C.A. No. 146, as amended) was
abolished under P.D. No. 1 and other laws and issuances. It was replaced by the following government
agencies:
• Civil Aeronautics Board (CAB) • Manila International Airport Authority (MIAA)
• Civil Aviation Authority of the Philippines (CAAP) • Maritime Industry Authority (MARINA)
formerly the Air Transportation Office
• National Electrification Administration (NEA)
• Clark Development Corporation (CDC)
• National Telecommunications Commission
• Energy Regulatory Commission (ERC)
(NTC)
• Land Transportation Franchising and
• National Water Resources Board (NWRB)
• Regulatory Board (LTFRB)
• Philippine Coast Guard (PCG)
• Land Transportation Office (LTO)
• Local Government Units (LGUs)
• Philippine Ports Authority (PPA)
• Local Water Utilities Administration (LWUA) • Subic Bay Metropolitan Authority (SBMA)
• Toll Regulatory Board (TRB)
 BASES OF REGULATION OF PUBLIC
UTILITIES
• The police power of the State justifies the regulation of public utilities
• The exercise of Police Power is justified because whenever private property is used for public
purpose and is affected with public interest, it cease to be juris privati only and becomes
subject to regulation.
 OWNERSHIP OF PUBLIC UTILITIES

“No franchise, certificate or any other form of authorization for the operation of a public
utility shall be granted except to citizens of the Philippines or to corporations or associations
organized under the laws of the Philippines at least sixty per centum (60%) of whose
capital is owned by such citizens...” (Section 11, Article XII of the 1987 Philippine
Constitution)
 Time when ownership must
commence
“The moment for determining the requisite Filipino nationality is when the entity applies
for a franchise, certificate or any other form of authorization for that purpose.” (People vs.
Quasha, GR No. L-6055, June 12, 1953)
 Voting Control Test and
Beneficial Ownership Test
• These tests are used to determine whether the corporation is a Philippine National.
– Full beneficial ownership of the stocks, coupled with voting rights is essential.
– The requirement of at least 60% Filipino ownership “must apply separately to each class of shares,
whether common, preferred, preferred non-voting or any other class of shares.”
 Ownership of Facilities

• The right to operate a public utility may exist independently and separately from the
ownership of the facilities thereof.
• A corporation is not subject to sixty percent (60%) Filipino equity requirement if it will
just own the equipment or properties that will be used by another entity which shall operate as
a public utility.
 O W NE R SH I P
R E L E VA N T N E W S

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 DEFINITIVE TERM

• Term of the franchise - 50 years at any given time

• In Pangasinan Transportation Co., Inc. vs. PSC (G.R. No. 47065, June 26, 1940), the Supreme
Court explained that:
In issuing a certificate, the Commission must necessarily be satisfied that the operation of the
service under said certificate during a definite period fixed therein will promote the public
interests in a proper and suitable manner.
 DEFINITIVE TERM

Section 11,Article XII of the 1987 Philippine Constitution

“nor shall such franchise, certificate, or authorization be exclusive in character or for a longer
period than fifty years.”
 ISSUANCE OF CERTIFICATE OF PUBLIC
CONVENIENCE (CPC)
Section 16(a) of Commonwealth Act No. 146 provides that:

“To issue certificates which shall be known as certificates of public convenience, 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 thereafter, certificates of public
convenience and certificates of public convenience and necessity will be granted only to citizens of
the Philippines or of the United States or to corporations, co-partnerships, associations or joint-
stock companies constituted and organized under the laws of the Philippines; Provided, That sixty
per centum of the stock or paid-up capital of any such corporations, co-partnership, association or
joint-stock company must belong entirely to citizens of the Philippines or of the United States:
Provided, further,That no such certificates shall be issued for a period of more than fifty years.”
 NON-EXCLUSIVITY

Section 46 of P.D. 198, as amended:

“No franchise shall be granted to any other person or agency for domestic water service
within the district or any portion thereof unless and except to the extent that the board of
directors of said district consents thereto by resolution duly adopted."
 NON-EXCLUSIVITY

In Republic vs. Express Telecommunications Co., Inc. (G.R. Nos. 147096 and 147210, January 15, 2002),
the Court held that:

“The Constitution is quite emphatic that the operation of the public utility shall not be
exclusive.”
 SUBJECT TO MODIFICATION OR
AMENDMENT
Neither shall any such franchise or right be granted except under the condition that it shall be
subject to amendment, alteration, or repeal by the Congress when the common good so
requires. (Section 11,Article XII of the 1987 Philippine Constitution)
 SUBJECT TO MODIFICATION OR
AMENDMENT
In Telecom. & Broadcast Attys. of the Phils., Inc. vs. COMELEC (G.R. No. 132922, April 21, 1998), the
Court held that:

Since a franchise is a mere privilege, the exercise of the privilege may reasonably be
burdened with the performance by the grantee of some form of public service.

Note: Radio and television broadcasting companies, which are given franchises, do not own the
airwaves and frequencies through which they transmit broadcast signals and images
 TAKE-OVER OF PUBLIC UTILITIES

Permanent take-over is when public utilities are expropriated, which are subject to payment of
just compensation of the State.

The State may, in the interest of national welfare or defense, upon payment of just
compensation, transfer to public ownership utilities and other private enterprises to be
operated by the Government. (Section 18,Article XII of the 1987 Philippine Constitution)
 TAKE-OVER OF PUBLIC UTILITIES

Temporary take-over happens when there is a national emergency.

In times of national emergency, when the public interest so requires, the State may, during the
emergency and under reasonable terms prescribed by it, temporarily take over or direct the
operation of any privately-owned public utility or business affected with public interest.
(Section 17,Article XII of the 1987 Philippine Constitution)
 TAKE-OVER OF PUBLIC UTILITIES

Temporary take-over happens when there is a national emergency.

1) The Congress, by a vote of two-thirds of both Houses in joint session assembled, voting
separately, shall have the sole power to declare the existence of a state of war.
2) In times of war or other national emergency, the Congress may, by law, authorize the
President, for a limited period and subject to such restrictions as it may prescribe, to exercise
powers necessary and proper to carry out a declared national policy. Unless sooner
withdrawn by resolution of the Congress, such powers shall cease upon the next adjournment
thereof. (Section 23,Article VI of the 1987 Philippine Constitution)
 MONOPOLIES AND UNFAIR
COMPETITION
The State shall regulate or prohibit monopolies when the public interest so requires. No
combinations in restraint of trade or unfair competition shall be allowed. (Section 19, Article XII,
1987 Philippine Constitution)
 PA R T 2
COMMON CARRIERS

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 COMMON CARRIERS

NCC 1732. Common carriers are persons,

corporations, firms or associations engaged in the
business of carrying or transporting passengers or
goods or both, by land, water, or air, for compensation,
offering their services to the public.
 L R T M I SH A P
R E L E VA N T N E W S

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COMMON CARRIERS (LAND)
TRAINS, BUSES, JEEPNEYS, ETC.
INFORMATION
LAW RA 4136. Land Transportation and Traffic Code

- Issuance, renewal and regulation of driver’s license;

- Responsible for registration of motor vehicles and renewals
- Strictly implement and enforce the laws relating to transportation
AGENCIES

- sectoral agency of the Department of Transportation (DOTr)

- mandated under the law to regulate land-based public transportation, and to
safeguard the welfare and interests of the commuting public.
COMMON CARRIERS (AIR)
PASSENGER AIRCRAFTS, AIR CARRIERS, ETC.
INFORMATION
LAW RA 776. Civil Aeronautics Board

CAB is mandated to regulate the economic aspect of air transportation, and shall have the
general supervision, control and jurisdiction over air carriers, general sales agents, cargo sales
agents, and air freight forwarders as well as their property, property rights, equipment, facilities,
and franchise (RA 776, as amended by PD 1462)
AGENCIES

CAAP is responsible for implementing policies on civil aviation in order to ensure safe,
economical, and efficient air travel. As an independent regulatory body with quasi-judicial and
quasi-legislative powers, CAAP is mandated to set comprehensive, clear and impartial rules and
regulation for the Philippine aviation industry.
COMMON CARRIERS (WATER)
SHIP, BOAT, FERRY, ETC.
INFORMATION
LAW RA 10635. Philippine Maritime Industry Authority

MARINA is responsible for integrating the development, promotion and regulation of the
maritime industry in the Philippines for all enterprises engaged in the business of designing,
constructing, manufacturing, acquiring, operating, supplying, repairing, and/or maintaining
vessels, or component parts thereof, of managing and/or operating shipping lines, shipyards,
drydocks, marine railways, marine repair ships, shipping and freight forwarding agencies and
AGENCIES similar enterprises. It is vested with quasi-judicial functions.

PCG is the country's vanguard against the entry of unsafe foreign vessels into the country
through its Port State Conrol. Pursuant to RA 9993, it is mandated to enforce regulations in
accordance with all relevant maritime international conventions, treaties or instruments of
which the government is signatory, and national laws.
COMMON CARRIERS (WATER)
SHIP, BOAT, FERRY, ETC.
INFORMATION

AGENCY PPA is the primary government agency concerned with the planning and
development of the country's seaports. Established in 1974, the PPA;s charter was
amended by EO 857, which expanded its functions to include integration and
coordination of ports nationwide. Industry Authority
 PA R T 3
OT H E R P U B L I C U T I L I T I E S

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TELECOMMUNICATIONS
Definition
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 wire, radio or other
electromagnetic, spectral, optical or technological
means

National Telecommunications Commission

- Under the administrative supervision of the Department of
Transportation and Communication as an attached agency
– vested with power in the supervision and control over all
telecommunications and broadcast services/facilities in the
Philippines
- Sole body that exercises supervision, adjudication, and control
over all telecommunications services throughout the country
PUBLIC TELECOMMUNICATIONS ACT
OF THE PHILIPPINES (RA 7925)
Declaration of Policy
Telecommunications is essential to the economic development, integrity and security of the
Philippines, and as such shall be developed and administered as to safeguard, enrich and
strength the economic, cultural, social and political fabric of the Philippines. The growth and
development of telecommunications services shall be pursued in accordance with the following policies:
a. A fundamental objective of government is to develop and maintain a viable, efficient, reliable and
universal telecommunication infrastructure using the best available and affordable technologies, as a
vital tool to nation building and development;
b. The expansion of the telecommunications network shall give priority to improving and extending
basic services to areas not yet served. For this purpose, government shall promote a fair, efficient and
responsive market to stimulate the growth and development of the telecommunications facilities and
services, with emphasis on the accessibility by persons to basic services in unserved and underserved
areas at affordable rates;
PUBLIC TELECOMMUNICATIONS ACT
OF THE PHILIPPINES (RA 7925)
Declaration of Policy
The growth and development of telecommunications services shall be pursued in accordance with the
following policies:
c. The radio frequency spectrum is a scarce public resource that shall be administered in the
public interest and in accordance with international agreements and conventions to which
the Philippines is a party and granted to the best qualified. The government shall allocate the
spectrum to service providers who will use it efficiently and effectively to meet public
demand for telecommunications service and may avail of new and cost effective
technologies in the use of methods for its utilization
d. Rates and tariff charges shall be fair, just and reasonable and for this purpose, the
regulatory body shall develop tariff structures based on socioeconomic factors and on
financial, technical and commercial criteria as measures to ensure a fair rate of return and as
a tool to ensure economic and social development;
PUBLIC TELECOMMUNICATIONS ACT
OF THE PHILIPPINES (RA 7925)
Declaration of Policy
The growth and development of telecommunications services shall be pursued in accordance with the
following policies:
e. Public telecommunications services shall be provided by private enterprises. The private
sector shall be the engine of rapid and efficient growth in the telecommunications industry;

f. A healthy competitive environment shall be fostered, one in which telecommunications

carriers are free to make business decisions and to interact with one another in providing
telecommunications services, with the end in view of encouraging their financial viability
while maintaining affordable rates;
g. A fair and reasonable interconnection of facilities of authorized public network operators
and other providers of telecommunications services is necessary in order to achieve a viable,
efficient, reliable and universal telecommunications services;
 PUBLIC TELECOMMUNICATIONS ACT
OF THE PHILIPPINES (RA 7925)
Declaration of Policy
The growth and development of telecommunications services shall be pursued in accordance with the
following policies:
h. The government shall give all the assistance and encouragement to Philippine international
carriers in order to establish interconnection with other countries so as to provide access to
international communications highways on a competitive basis;

i. For efficiency, practicability, and convenience, but with due regard to the observance of due
process at all times, regulation of telecommunications entities shall rely principally on an
administrative process that is stable, transparent and fair, giving due emphasis to technical,
legal, economic and financial considerations;
j. No single franchise shall authorize an entity to engage in both telecommunications and
broadcasting, either through the airwaves or by cable;
 PUBLIC TELECOMMUNICATIONS ACT
OF THE PHILIPPINES (RA 7925)
Declaration of Policy
The growth and development of telecommunications services shall be pursued in accordance with the
following policies:
k. Ownership of public telecommunications entities to as wide a number of people as
possible, preferably to its customers, in order to encourage efficiency and public
accountability and to tap personal savings shall be encouraged;

l. The development of a domestic telecommunications manufacturing industry to meet the

needs of the Philippines and to take advantage of export opportunities shall be promoted
without preventing, deterring or hampering the goal of full universal service; and
m. Human resources skills and capabilities must be harnessed and improved to sustain the
growth and the development of telecommunications under a fast changing
telecommunications environment.
ELECTRICITY
 R O TAT IN G
BR O W NO U T
R E L E VA N T N E W S

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ELECTRICITY
Sales and Consumption
The total electricity sales and consumption all
over the country still posted a notable figure of
99,765 GWh in 2018 from 94,370 GWh in 2017,
equivalent to 5.7% growth from the previous year.
(https://www.doe.gov.ph/electric-power/2018-power-supply-and-demand-
highlights)

Energy Regulatory Commission

- to promote competition, encourage market
development, ensure consumer choice, and penalize
abuse of market power in the restructured electricity
industry
- to promote competition by creating a level playing
field, among others, in the competitive retail
electricity market
ELECTRIC POWER INDUSTRY REFORM
ACT (EPIRA) OF 2001
Declaration of Policy
It is hereby declared the policy of the State
a. To ensure and accelerate the total electrification of the country;
b. To ensure the quality, reliability, security and affordability of the supply of electric power;
c. To ensure transparent and reasonable prices of electricity in a regime of free and fair
competition and full public accountability to achieve greater operational and economic
efficiency and enhance the competitiveness of Philippine products in the global market;
d. To enhance the inflow of private capital and broaden the ownership base of the power
generation, transmission and distribution sectors;
e. To ensure fair and non-discriminatory treatment of public and private sector entities in the
process of restructuring the electric power industry;
f. To protect the public interest as it is affected by the rates and services of electric utilities and
other providers of electric power;
ELECTRIC POWER INDUSTRY REFORM
ACT (EPIRA) OF 2001
Declaration of Policy
It is hereby declared the policy of the State
g. To assure socially and environmentally compatible energy sources and
infrastructure;
h. To promote the utilization of indigenous and new and renewable energy
resources in power generation in order to reduce dependence on imported energy;
i. To provide for an orderly and transparent privatization of the assets and
liabilities of the National Power Corporation (NPC);
j. To establish a strong and purely independent regulatory body and system to
ensure consumer protection and enhance the competitive operation of the
electricity market; and
k. To encourage the efficient use of energy and other modalities of demand side
management.
WATER
 WAT E R
I NT ER R U PT I O NS
R E L E VA N T N E W S

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WATER
Existing domestic water utilities are not meeting
the needs of the communities they serve; water
quality is unsatisfactory; pressure is
inadequate; and reliability of service is poor; in
fact, may persons receive no piped water
service whatsoever.

ELEMENTS OF LOCAL UTILITY

- Domestic water systems
- Sanitary Sewers

Water quality
Local Water Utilities Administration
Design and Construction
- Regulates local water districts
Equipment, Materials, Supplies
- Shall have the power and duty to establish
standards for local water utilities, and adopt rules Operations and Maintenance
and regulations Personnel
- Shall vigorously consult and coordinate its actions
Organization
with all governmental agencies in the
promulgation of these standards. Accounting
WATER
Purposes of Local Water Districts
- Acquiring, installing, improving,
maintaining, and operating water
supply and distribution systems for
domestic, industrial, municipal and
agricultural uses for residents and lands
within the boundaries of such districts
- Providing, maintaining and operating
water collection, treatment and disposal
facilities
- Conducting such other functions and
operations incidental to water resource
development, utilization and disposal
within such districts, as area necessary
or incidental to said purpose
PROVINCIAL WATER UTILITIES ACT
OF 1973
- One of the pre-requisites to the orderly and well-balanced growth of urban areas is an
effective system of local utilities, the absence of which is recognized as deterrent to economic
growth, a hazard to public health and irritant to the spirit and well-being of the citizenry

Declaration of Policy
- creation, operation, maintenance and expansion of reliable and economically viable and sound water supply and
wastewater disposal system for population centers of the Philippines
- the formulation and operation of independent, locally controlled public water districts is found and declared to be the
most feasible and favored institutional structure.
- it is hereby declared to be in the national interest that said districts be formed and that local water supply and
wastewater disposal systems be operated by and through such districts to the greatest extent practicable.
- To encourage the formulation of such local water districts and the transfer thereto to existing water supply and
wastewater disposal facilities.
- funding requirements for such local water systems, other than those provided by local revenues, should be channeled
through and administered by an institution on the national
- to effect system integration or joint investments and operations whenever economically warranted and to assure the
maintenance of uniform standards, training of personnel and the adoption of sound operating and accounting
procedures.
WATER
Metropolitan Waterworks and Sewerage System
(MWSS)
- organized under RA 6234
- Exercises jurisdiction over the waterworks and
sewerage systems in Metropolitan Manila, Province of
Rizal and portion of Province of Cavite
- Exercise regulatory functions over the two
concessionaires including monitoring, consumer
protection and rate review and monitoring

Concessionaires
- Manila Water Company Inc
- Maynilad Water Services Inc
 PA R T 4
QUESTIONS?

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