Quiz 17 Questions Flashcards
Discussion:
Electric cooperative are private in nature.
G.R. No. 227670
1) Is there a monopoly or exclusive franchise for power distributors? Explain.
Yes. There is monopoly or exclusive franchise for power distributors.
Each power distributor is assigned to a specific area or region with no other distributor, having specific boundary/limits/jurisdiction. Essentially, in one grid, there is only one distributor. It would be a disservice to the community if there are two competing power distributors present.
G.R. No. 227670
2) How could the retail rates of power be regulated in a captive market?
In a captive market (under monopoly), retail rates of power could be regulated in two (2) ways:
1) through regulation of power supply agreements (PSAs) by and under the control of the ERC and DoE; or
2) through cooperative bidding.
G.R. No. 227670
3) If the PSAs were not voided, how could it have frozen the implementation of the CSP for 20 years?
The PSAs are essentially contracts between the power service provider and the distributor. Their contracts last around 20 years, thus making the implementation of the CSP frozen.
G.R. No. 217590
4) Is the construction business constitutionally restricted to Filipinos?
No. The construction business is not fully constitutionally restricted to Filipinos. This is shown in the allowed inclusion of at most 30% ownership of foreign companies in local corporations, and in the practice of joint venture agreements. It is only the practice of the profession that is constitutionally restricted.
G.R. No. 217590
5) Does Section 19, Article XII of the Constitution impose a policy of Filipino monopoly in the economy?
No. Section 19, Article XII of the Constitution does not impose a policy of Filipino monopoly in the economy. It talks about the anti-trust policy and the prioritization of Filipinos.
G.R. No. 217590
6) If the construction industry is opened to foreigners, would it be unfair to our citizens?
No, it would not be unfair to our citizens.
This means that there are now many options as to goods and services sought in the construction industry. This could translate to the lowering of prices due to healthy competition.
Notes:
