Regulatory bodies: are they of any use?

In the early 1960s, a single regulatory body, the Public Service Commission (PSC), had oversight function over all public utilities.  When utility providers proposed a rate increase, the PSC would hold public hearings where the proponent could justify the propriety of the rates being sought.   Speaking for consumers and the general public were “opposers” that included highly respected, cause-oriented lawyers and other representatives (designated and/or self-appointed).  Media reported the proceedings. The transparency paved the way for the public acceptance of rate increases.

Life was much simpler then.  When a utility was given a license to operate, government in effect gave a guaranteed and “monopolized” market for the services offered.  This imposed on both the government licensor and the licensed utility the obligation not only to ensure that the services would be of the highest quality possible but also that the captive consumers were guaranteed  fairness of the fees and other charges imposed.  Legislation pegged the limit of annual returns that could be earned by utility operators to 12 percent, and all seemed to work well for a long time.

Over time, however, life and technology got more complicated.  Today, a number of regulatory bodies are in operation, with each focused on a very specialized concern.

For example, we have the Energy Regulatory Commission and the National Electrification Administration for electric services.  Telephone services are supervised by the National Telecommunications Commission—but the simultaneous convergence and diversification of computers, telephones, cable TV and other communication modalities have stretched its limited budgets to breaking point.  Transportation has the Land Transportation Office, Land Transportation Franchising and Regulatory Board, Toll Regulatory Board, Maritime Industry Authority, Philippine Ports Authority and the Civil Aeronautics Board.  For water, there are the Local Water Utilities Administration, Metropolitan Waterworks and Sewerage System-Regulatory Office and National Water Resources Board.

Somehow, this proliferation of regulators and watchdogs has failed to moderate the greed of utility operators.  Instead of protecting the public interest, today’s regulators blindly legitimize the new imposts forced on the consuming public, a habit acquired and perfected during the reign of Gloria Macapagal-Arroyo.  Price increases seem to be an almost  daily occurrence in food, fuel, fares, electricity, water, tolls and other services.  Even powerful crusaders like Sen. Juan Ponce Enrile and Rep. Bernadette Herrera-Dy have been unable to stem the juggernaut of rate increases.  And recently, Sen. Ralph Recto warned that these increases could lead to public unrest.

Regulators just aren’t doing their jobs, especially in the water sector that doesn’t import any raw material.  Recto may be prophetic: such unrest could be the only way to prod government regulators into actually doing something to protect consumers.

—JOSE OSIAS,

jzosias@gmail.com