What are the strict limitations placed on granting franchises for public utilities?
The State heavily regulates the operation of public utilities to ensure national security and public service. A franchise or certificate for a public utility can only be granted to Filipino citizens or qualified corporations. These corporations must be organized under Philippine laws with at least sixty per centum Filipino capital ownership. Furthermore, the franchise cannot be exclusive or exceed fifty years, as mandated by Article XII, Section 11, 1987 Philippine Constitution. “No franchise, certificate, or any other form of authorization for the operation of a public utility shall be granted except to citizens of the Philippines or to corporations or associations organized under the laws of the Philippines at least sixty per centum of whose capital is owned by such citizens, nor shall such franchise, certificate, or authorization be exclusive in character or for a longer period than fifty years.” 22-Mar-26About Nicolas and De Vega Law Offices
Nicolas and De Vega Law Offices is a full-service law firm in the Philippines. You may visit us at the 16th Flr., Suite 1607 AIC Burgundy Empire Tower, ADB Ave., Ortigas Center, 1605 Pasig City, Metro Manila, Philippines. You may also call us at +632 84706126, +632 84706130, +632 84016392 or e-mail us at [email protected]. Visit our website https://ndvlaw.com/.
