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SC: LRT, MRT fare increases require prior notice, hearing to be valid
By GMA Integrated News Train fare increases require prior notice and hearing for them to be valid, the Supreme Court (SC) has ruled.
The decision stemmed from the petitions challenging the then-Department of Transportation and Communications (DOTC) Department Order 2014-014 (D.O. 2014-014), which adopted a uniform base fare of P11 for Light Rail Transit Lines 1 and 2 and Metro Rail Transit Line 3, plus P1 per kilometer of distance traveled.
Beginning January 2015, the fares for the three railway lines are as follows: for LRT1, P15 to P30; for LRT2, P15 to P25; and for MRT3, P13 to P28.
However, the petitioners alleged that the fare increases were implemented without due notice and hearing.
According to the Court, the Administrative Code of 1987 expressly requires that there be prior notice and hearing in rate-fixing, with the notice to be published at least two weeks before the hearing.
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The DOTC published a Notice of Public Consultation on January 20 and 27, 2011, in two newspapers. Public consultations were held on February 4–5, 2011.
It published a new notice for the public consultation scheduled for December 12, 2013.
“While the fare increase took effect only on December 20, 2014, the Court held that the previous public consultations substantially served the purpose of the hearing requirement under the law, as the proposed fare structure was retained and the original basis and purpose for the proposed hike remained the same,” the SC said.
The Court also said that the agency’s power to fix rates has been validly delegated by Congress in the Administrative Code.
Contrary to the petitioners’ assertions, the Land Transportation Franchising and Regulatory Board (LTFRB) has no authority to implement and/or adjudicate fare increases for the rail transit system, the SC added.
The decision was written by Associate Justice Jhosep Lopez. —VBL, GMA Integrated News