Law Summary
Composition and Divisions of the Regulatory Office (RO)
- The RO and divisions transferred include:
- Technical Regulation (technical, engineering, asset management, investment)
- Secretary and Legal Adviser
- Financial Regulation (accounting, rate adjustments, economic functions)
- Quality and Customer Service Regulation (service standards and customer relations)
Nature of Administrative Relationship
- MWSS and RO are under OP’s supervision.
- Subject to periodic reporting requirements.
- Must comply with general policies for transparency, proper and equitable performance.
Powers and Functions of the Regulatory Office
- Monitor awarded Concession Agreements.
- Review and monitor water supply and sewerage rates, including extraordinary price adjustments and rate rebasing.
- Monitor contracts between Concessionaires and customers.
- Coordinate regular independent technical and financial audits of Concessionaires and public disclosure.
- Enforce service standards and improvements.
- Monitor accounting practices and infrastructure conditions.
- Respond to customer complaints and conduct investigations.
- Conduct inquiries related to water, sewerage, and sanitation services.
- Implement refunds or credits for excess collections.
- Approve bilateral supply contracts with prior hearings.
- Enforce transfer pricing and arm’s length trading policies for related party transactions.
- Promulgate necessary rules and regulations related to Concession Agreements.
- Impose sanctions, fines, or penalties for violations, with fines returned to customers.
- Issue subpoenas for investigations.
- Exercise other powers necessary for mandate fulfillment.
Creation and Composition of the Regulatory Office En Banc
- Composed of the Chief Regulator and four Members appointed by the President.
- Members serve five-year terms; successors fill unexpired terms.
- One member oversees each division.
- Matters require division head endorsement before RO en banc consideration.
Qualifications for Chief Regulator and Members
- Philippine citizens and residents.
- Persons of good moral character.
- At least 10 years of experience for Chief Regulator and 5 years for Members.
- Expertise in law, economics, finance, accounting, engineering, management, or business.
Disqualifications
- Prohibited from membership if previously connected in a supervisory or managerial capacity with Concessionaires or affiliates.
- Subject to disqualifications under Republic Act No. 6713.
Prohibitions During Tenure
- Members cannot hold other offices or employment.
- Cannot engage in professions (except teaching), business, or have financial interests in government contracts or franchises.
- Prohibits conflicts of interest.
- Relatives within the fourth civil degree barred from transacting or appearing before the RO during membership and for two years after.
Role and Responsibilities of the Chief Regulator
- Overall responsibility for RO operations.
- Chairs RO meetings and approves hiring and dismissal of professional personnel.
- Acts as principal spokesperson on Concession matters.
- Must possess high professional reputation and integrity.
- Accountable to the Office of the President.
Operations of the Regulatory Office En Banc
- Functions as a collegial body.
- Requires affirmative vote of at least three members for decisions.
- Chief Regulator may issue procedural or administrative rules not inconsistent with this Order.
Transitory Provisions
- Current RO members continue their functions until new Presidential appointments.
- Existing personnel continue subject to applicable laws and regulations.
Separability Clause
- If any provision is declared unconstitutional or invalid, other parts remain effective.
Repealing Clause
- All inconsistent orders, proclamations, rules, or regulations are revoked, amended or modified accordingly.
Effectivity
- The Order takes effect immediately upon issuance.