Section 4Sec./Art. 4

Section 13 of Commonwealth Act No. 146, as amended, is hereby further amended to read as follows:

"Section 13. (a) The Commission shall have jurisdiction and supervision over all public services, including public utilities, and their franchises, equipment, and other properties, and in the exercise of its authority, it shall have the necessary powers and the aid of public force:Provided,That public services, including public utilities, owned or operated by government entities shall be regulated by the Commission in the same way as privately-owned public services.

"Nothing in this Act shall be interpreted to diminish, limit, or restrict the authority of Congress from granting franchises to public services, as may be provided by law. Any franchise or certificate necessary for the operation of a public service shall be granted by Congress unless otherwise previously delegated by law to the relevant Administrative Agencies.

"x x x

"(d)Public Utility. -Public Utility refers to a public service that operates, manages or controls for public use any of the following:

"(1) Distribution of Electricity;

"(2) Transmission of Electricity;

"(3) Petroleum and Petroleum Products Pipeline Transmission Systems;

"(4) Water Pipeline Distribution Systems and Wastewater Pipeline Systems, including sewerage pipeline systems;

"(5) Seaports; and

"(6) Public Utility Vehicles.

"All concessionaires, joint ventures and other similar entities that wholly operate, manage or control for public use the sectors above are public utilities.

"Nothing in this Act shall be interpreted as a requirement for legislative franchise where the law does not require any. No other person shall be deemed a public utility unless otherwise subsequently provided by law.

"(e) Upon the recommendation of the National Economic and Development Authority (NEDA), the President may recommend to Congress the classification of a public service as a public utility on the basis of the following criteria:

"(1) The person or juridical entity regularly supplies and transmits and distributes to the public through a network a commodity or service of public consequence;

"(2) The commodity or service is a natural monopoly that needs to be regulated when the common good so requires. For this purpose, natural monopoly exists when the market demand for a commodity or service can be supplied by a single entity at a lower cost that by two or more entities;

"(3) The commodity or service is necessary for the maintenance of life and occupation of the public; and

"(4) The commodity or service is obligated to provide adequate service to the public on demand.

"All public services, including those classified as public utilities under this Act, shall continue to be regulated and supervised by the relevant Administrative Agencies under existing laws.

"A public service which is not classified as a public utility under this Act shall be considered a business affected with public interest for purposes of Sections 17 and 18 of Article XII of the Constitution.

"Notwithstanding any law to the contrary, nationality requirements shall not be imposed by the relevant Administrative Agencies on any public service not classified as a public utility.

"The NEDA shall provide periodic advice to Administrative Agencies on the proper application of the constitutional and other legal restrictions to local and foreign-owned subcontractors, without putting operational resiliency at risk."