Bill revising Public Service Act awaits final Senate nod

Sen. Grace Poe hears her colleagues’ proposed amendments to Senate Bill No. 2094, which seeks to revise the Commonwealth Act No. 46, or the Public Service Act, during the hybrid plenary session Tuesday, December 14, 2021. (Voltaire F. Domingo/Senate PRIB)

Updated @ 11:40 p.m., Dec. 14, 2021

MANILA, Philippines — The Senate on Tuesday approved on second reading a bill that aims to amend the Public Service Act (PSA), allowing foreign ownership of of airlines and telecommunications firms, among other public services.

During their plenary session, senators passed Senate Bill No. 2094, which seeks to revise the Commonwealth Act No. 46 or the Public Service Act.

The bill seeks to amend the PSA by providing a clearer differentiation between “public services” and “public utilities” that will free public services not considered natural monopolies from foreign equity restrictions.

The proposal under the Senate version of the bill limits “public utility” to services on the distribution of electricity, the transmission of electricity, and water pipeline distribution and sewerage pipeline systems, airports, seaports, and public utility vehicles.

Tollways and expressways were also included to those considered as a public utility during Tuesday’s period of amendments.

Thus, under the Senate bill, sectors not considered to be public utilities—such as telecommunications, airlines, and the domestic shipping industry—would no longer be covered by the citizenship requirement.

Sen. Grace Poe, a sponsor of the bill, earlier explained that public utilities are to be treated as natural monopolies which must be restricted pursuant to Section 11, Article XII of the Constitution, which requires public utilities to be 60 percent Filipino-owned.

Meanwhile, all other public services that are not natural monopolies will be freed from such foreign equity restriction but not from any of their other responsibilities as public service providers, she pointed out.

Before the Senate’s second reading approval of the bill on Tuesday, Poe reiterated that the bill primarily intends to provide Filipino consumers with “better choices.”

By opening up public services to foreign investors, Poe said she expects that the next generation would be given “modern, more accessible and affordable” services.

“We need to be forward-looking and not be hampered by some of our mistrust and fears,” she added.

The Senate will approve the bill on third and final reading on Wednesday since its passage was certified as urgent by President Rodrigo Duterte.

With the certification, the Senate can immediately proceed with the third reading approval of the bill without waiting for three days after it was approved on second reading.

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