Under House Bill 4423, utilities "deeply imbued with public interest" shall be subjected to broad reportorial requirements on financial dealings to promote transparency and decency.
Entities engaged in the operation of toll expressways, mass rail transit systems and telecommunications as well as those importing and distributing oil and petroleum products shall also be covered by the new disclosure rules.
"Prevailing market conditions have deprived the consuming public, and even regulators, truthful and adequate information as to the validity of each utility’s petition for a rate adjustment," Teves lamented.
"We have nothing against the firms making money for shareholders. We just want them to come clean so that once a firm seeks a rate increase, consumers can decide for themselves whether or not the entity concerned is being fair, or is being unreasonable," Teves pointed out.
Under Teves’ bill – the proposed Public Utilities Transparency and Disclosure Act – utilities and similar entities shall be required to routinely submit:
• Audited financial statements specifically indicating the after-tax profits retained by the firm or paid out as dividends to shareholders or remitted to the parent company;
• A list of the top 100 shareholders and the dividends, fees, allowances and other payments made to them if they also happen to be corporate officers, or were engaged by the firm in any manner;
• Copies of all contracts and papers covering debt obligations whereby the firm is principal or joint debtor, creditor or guarantor, and copies of income tax returns filed;
• A list of spending for the improvement, expansion, maintenance or repair of facilities and machinery used in operations, to include the sums paid and the names and addresses of entities or persons that received payment for the expenditure; and,
• A monthly report of revenues arising from the sale of goods and services to the public.
The documents shall be filed with the regulator concerned, Bureau of Internal Revenue, Departments of Finance, Trade and Industry and Budget, the heads of the congressional committees on public services and on ways and means and the National Economic Development Authority.
Without need of demand, the firms shall also send copies of all submissions to the three largest newspapers. Consumers may also obtain copies within 10 working days from request.