Digest.ph

RA 5514 granted PHILCOMSAT a franchise for international satellite communications. It constructed and installed various satellite facilities. Under Sec. 5 of RA 5514, it is exempted from PSC, now NTC. EO 167, however, placed it under NTC control and required to apply for CPCN and apply for authority to charge rates In Sep. 9 1987 – Applied for authority to continue operating facilities operated since 1967, during pendency, also applied for authority to provide services and charge rates Sep 16, 1987 – both granted for Six months validity and extended upon expiration by another six months (Sep 16, 1988) Controversy: Another extension was granted by the NTC for six months but rates were subjected to 15% reduction

Only standard when delegating rate-fixing powers is that the rate must be reasonable and just. Respondent NTC, in the exercise of its rate-fixing power, is limited by the requirements of public safety, public interest, reasonable feasibility and reasonable rates, which conjointly more than satisfy the requirements of a valid delegation of legislative power.