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What is a Certificate of Public Convenience (CPC)?

 

An authorization issued for the operation of public services for which no franchise, either municipal or legislative, is required by law, such as a common carrier.

 

Under the Public Service Law, a certificate of public convenience can be sold by the holder thereof because it has considerable material value and is considered a valuable asset (Raymundo v. Luneta Motor Co., G.R. No. 39902, Nov. 29, 1933).

 

Does the CPC confer upon the holder any proprietary right or interest in the route covered thereby?

 

No. (Luque v. Villegas, G.R. No. L-22545, Nov. 28, 1969). However, with respect to other persons and other public utilities, a certificate of public convenience as property, which represents the right and authority to operate its facilities for public service, cannot be taken or interfered with without due process of law. Appropriate actions may be maintained in courts by the holder of the certificate against those who have not been authorized to operate in competition with the former and those who invade the rights which the former has pursuant to the authority granted by the Public Service Commission (A.L. Animen Transportation Co. v. Golingco, G.R. No. 17151, Apr. 6, 1922)

 

What are the requirements for the grant of certificate of public convenience?

 

1. Applicant must be a citizen of the Philippines. If the applicant is a Corporation, 60% of its capital must be owned by Filipinos

2. Applicant must prove public necessity

3. Applicant must prove the operation of proposed public service will promote public interest in a proper and suitable manner; and

4. Applicant must have sufficient financial capability to undertake proposed services and meeting responsibilities incidental to its operation. (Kilusang Mayo Uno v. Garcia G.R. No. 108584, Dec. 22, 1994)

 

Cite instances where a certificate of public convenience is not necessary?

 

1. Warehouses

2. Animal-­‐drawn vehicles or banca powered by oar or by sail; tug boats and lighters

3. Airships except as to fixing rates

4. Radio companies, except as to fixing of rates

5. Ice plants

6. Public market

7. Public utilities operated by the national government or political subdivision except as to rates.

 

What are the grounds that oppositors may raise to the application for a certificate of public convenience?

 

1. The area has already a well-established operator – prior operator rule.

2. Interpose an objection stating that the grant of the application would result to a ruinous competition.

3. Attack the citizenship of the applicant (Sec. 11, Art. XII of the 1987 Constitution prohibits the granting of franchise or certificate for the operation of public utility in favor of non-Filipino citizens); or

4. The applicant does not have the necessary financial capacity.


What are the guidelines to eliminate the sale and transfer of expired and/or dead Certificate of Public Conveniences (CPCs)?

 

1. No approval of sale and transfer of a CPC shall be accepted where the validity of CPC being conveyed is less than 6 months on the date of its filing with the LTFRB.

2. No application for approval of sale and transfer of a CPC shall be accepted unless the units authorized therein are registered with the LTO for the current year.

3. Where the authorized units under the CPC conveyed have all not been registered with the LTO for the current year, the application for the approval of sale and transfer will be accepted and processed only for the actual number of registered units corresponding to the CPC conveyed.

4. No application for approval of sale and transfer of a CPC shall be accepted, unless all fees/dues have been fully paid to the LTO and LTFRB, and taxes to the BIR (DOTC Order 2010-34).