May Congress delimit through legislation the constitutional coverage of ‘public utilities’ - BusinessWorld Online

July 4, 2022 | 6:56 pmIn its Article XII on National Economy and Patrimony, the 1987 Constitution provides in no uncertain terms that “No franchise, certicate, 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, certiIn essence, the constitutional...

Fr. Bernas wrote that “Constitutional law, as understood both in American and Philippine law, is not just the text of the constitution itself. It is ‘a body of rules resulting from the interpretation by a high court of cases in which the validity, in relation to the constitutional instrument, of some act of governmental power … has been challenged.

In addressing the question, it must be kept in mind that the statutory regulation of public utilities in general which formally began under Act No. 2307 on Dec. 19, 1913 — which created the Board of Public Utility Commission, later changed to Public Service Commission under Act No. 3316 — pre-dated the constitutional nationalization of public utilities, when it first appeared under Sec. 8, Art. XIV of the 1935 Constitution.

The SC in Tan Piaco used the enumeration under Sec. 14 of Act No. 2307 to determine what constitutes “public utility” and in addition required the showing of “public use” in ruling that “Under the provisions of said section, two things are necessary: The individual, copartnership … must be a public utility; and the business in which such individual copartnership … is engaged must be for public use.

The Court then concluded that because of such amendment “the term ‘public utility,’ in this jurisdiction, [covers] corporation, or joint stock company that now or hereafter may own, operate, manage, or control, within the Philippine Islands, any ice, refrigeration, cold storage system, plant, or equipment, for public use.”

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