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Unformatted text preview: demand or acquire exclusivitly in the operation of a public utility. Thus, a franchisee cannot complain of seizure or taking of property because of the issuance of another franchise to a competitor. (Pilipino Telephone Corporation v. NRC, G.R. No. 138295, 2003) Q: Is the power to grant licenses for or to authorize the operation of public utilities solely vested to congress? A: No, the law has granted certain administrative agencies such power (See E.O. nos. 172& 202), Supreme Court said that Congress does not have the exclusive power to issue such authorization. Administrative bodies, e.g. LTFRB, ERB, etc., may be empowered to do so., Franchises issued by congress are not required before each and every public utility may operate. (Albano v. Reyes 175 SCRA 264) Q: Can the Congress validly delegate its authority to issue franchises and licenses? 218 A: Yes, Section 10, RA 776 reveals the clear intent of Congress to delegate the authority to regulate the issuance of a license to operate domestic air transport services. (Philippine Airlines v. Civil Aeronautics Board, G.R. No. 119528, March 26, 1997) Also, the Supreme Court acknowledged that there is a trend towards delegating the legislative power to authorize the operation of certain public utilities to administrative agencies and dispensing with the requirement of a congressional franchise. However, in this case, it was held that in view of the clear requirement for a legislative franchise under PD 576‐A, the authorization of a certificate of public convenience by the NTC for the petitioner to operate television Channel 25 does not dispense with the need for a franchise. (Associated Communications and Wireless Services ‐ United Broadcasting Networks v. National Telecommunications Commission, GR No. 144109, February 17, 2003) Q: What is a public utiliy? A: A public utility is a business or service engaged in regularly supplying the public with some commodity or service of public consequence, such as electricity, gas, water, transportation, telephone or telegraph service. To constitute a public utility, the...
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This document was uploaded on 03/12/2014.

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