EXPLAINER: What is the Public Service Act?

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A Makati court has issued a warrant of arrest against Batangas Representative Leandro Leviste over alleged violation of the Public Service Act.

The Department of Justice (DOJ) said his case stemmed from a finding of prima facie evidence with reasonable certainty of conviction that SPSBC willfully neglected and intentionally failed to comply with its obligations under its legislative franchise.

But what is Commonwealth Act No. 146 or the Public Service Act, as amended by Republic Act No. 11659?

The Commonwealth Act No. 146, signed by then President Manuel L. Quezon in 1936, created the Public Service Commission (PSC).

The PSC shall have general supervision and regulation of, jurisdiction and control over, all public service, and also over their property, property rights, equipment, facilities; and franchises.

Public utility has been defined as public service that operates, manages or controls for public use any of the following:

• Distribution of electricity
• Transmission of Electricity
• Petroleum and Petroleum Products Pipeline Transmission Systems
• Water Pipeline Distribution Systems and Wastewater Pipeline Systems, including sewerage pipeline systems
• Seaports
• Public Utility Vehicles

According to Section 15, no public service shall operate in the country without having first secured a Certificate of Public Convenience/ Certificate of Public Convenience and Necessity from the PSC.

Section 15 was later amended to state that the PSC shall prescribe as a condition for the issuance of the certificate or authorization that the service can be acquired by the government upon payment of just compensation in accordance with the pertinent laws, rules, and regulations on expropriation.

Meanwhile, Section 16 grants the PSC the power to issue certificates, to approve any franchise or privilege, subject to constitutional limitations, as well as to fix and determine rates.

Leviste was specifically charged with violation of Section 25, which was amended to state that any person who shall knowingly and willfully neglect, fail, or omit to perform any act or thing required to be done by the Act shall be punished, after notice and hearing, by a fine not exceeding P2 million or by imprisonment of not lower than 6 years and one day and not higher than 12 years.

It stated that when the entities involved are judicial persons, the penalty of imprisonment shall be imposed on its officers, directors, or employees holding managerial positions who are knowingly and willfully responsible for such violation.

In May, the Department of Energy filed a complaint with the Department of Justice against Leviste and five officials of the Solar Para sa Bayan Corporation (SPBC) for alleged violations of the Public Service Act.

According to the complaint filed with the DOJ, the firm failed to construct and provide electric power to customers and end users in remote, unviable, unserved, or underserved areas as provided under the company’s 2019 franchise.

Leviste, for his part, told his supporters "not to worry" about him. His camp also said it will file a motion in connection to the arrest warrant issued against Leviste. —VAL, GMA News