An Act Amending Commonwealth Act No. 146, Otherwise Known as the Public Service Act, as Amended

Summary of Republic Act No. 11659 (Public Service Act)

Declaration of Policy (Section 1):
- Encourage private enterprise and expand investment in the country
- Provide efficient, reliable and affordable basic services
- Ensure effective regulation of public services
- Provide reasonable rate of return to public services
- Rationalize foreign equity restrictions by defining "public utilities"
- Institute processes for protection of national security

Definitions (Section 2):
- Defines terms like "public utility", "critical infrastructure", "foreign state-owned enterprise", "national security", and various types of services

Transfer of Jurisdiction (Section 3):
- Recognizes transfer of powers and duties of Public Service Commission to various Administrative Agencies

Public Utilities (Section 4):
- Defines "public utility" to include:
  - Distribution of electricity (Section 4(d)(1))
  - Transmission of electricity (Section 4(d)(2))
  - Petroleum and petroleum products pipeline transmission systems (Section 4(d)(3))
  - Water pipeline distribution systems and wastewater pipeline systems (Section 4(d)(4))
  - Seaports (Section 4(d)(5))
  - Public utility vehicles (Section 4(d)(6))
- Allows the President to recommend classification of a public service as a public utility based on certain criteria (Section 4(e))
- Provides that public services not classified as public utilities are considered businesses affected with public interest (Section 4(e))
- Prohibits imposing nationality requirements on public services not classified as public utilities (Section 4(e))

Certificates and Authorizations (Sections 5, 6, 8, 15, 16, 18, 20):
- Requires certificates or authorizations for operation of public services (Section 16(a))
- Certificates shall only be issued to Philippine corporations, partnerships or associations (Section 16(a))
- Allows Administrative Agencies to fix rates, subject to conditions (Section 16(c))
- Prohibits operation without certificate, with penalties (Section 18)
- Requires approval for various acts like rate changes, facility extensions, stock issuance, mergers, and foreign ownership changes (Section 20)

Penalties and Fines (Sections 21, 23, 24, 25, 26, 29, 30):
- Imposes fines of P5,000 to P2,000,000 per day for violations (Section 21)
- Allows refunds to consumers for excess rates collected (Section 21)
- Imposes imprisonment of 6 years and 1 day to 12 years and/or fines up to P2,000,000 for various offenses (Sections 23, 24, 25, 26)
- Provides penalties for contempt, obstruction, and failure to comply with subpoenas (Sections 29, 30)

National Security and Foreign Ownership (Sections 23, 24, 25):
- Allows the President to suspend or prohibit transactions or investments that grant control to foreigners for national security reasons (Section 23)
- Prohibits foreign state-owned enterprises from owning capital in public utilities or critical infrastructure, with exceptions (Section 24)
- Imposes reciprocity requirement for foreign nationals to own more than 50% in critical infrastructure (Section 25)
- Requires employment permits and skills transfer programs for foreign nationals in certain industries (Section 25)

Information Security (Section 26):
- Requires telecommunications entities to obtain and maintain ISO certifications on information security (Section 26)

Studies, Oversight and Audits (Sections 27, 28, 29):
- Requires NEDA to conduct regular studies on regulatory reform and baseline survey (Section 27)
- Establishes Congressional Oversight Committee for periodic review (Section 28)
- Mandates annual performance audits, including risk assessment and cybersecurity for critical infrastructure and public utilities (Section 29)

Other Provisions:
- Allows non-impairment of existing agreements (Section 32)
- Provides for implementing rules and regulations (Section 30)
- Contains separability and repealing clauses (Sections 33, 34)
- Specifies effectivity date (Section 35)