Facts: Herein petitioner is engaged in providing for services involving telecommunications. Charging rates for certain specified lines that were reduced by order of herein respondent Jose Alcuaz Commissioner of the National Telecommunications Commission. The rates were ordered to be reduced by fifteen percent (15%) due to Executive Order No. 546 which granted the NTC the power to fix rates. Said order was issued without prior notice and hearing.
Issue: Whether or Not E.O. 546 is unconstitutional.
Held: Yes. Respondents admitted that the application of a policy like the fixing of rates as exercised by administrative bodies is quasi-judicial rather than quasi-legislative. But respondent’s contention that notice and hearing are not required since the assailed order is merely incidental to the entire proceedings and temporary in nature is erroneous. Section 16(c) of the Public Service Act, providing for the proceedings of the Commission, upon notice and hearing, dictates that a Commission has power to fix rates, upon proper notice and hearing, and, if not subject to the exceptions, limitations or saving provisions.
It is thus clear that with regard to rate-fixing, respondent has no authority to make such order without first giving petitioner a hearing, whether the order be temporary or permanent, and it is immaterial whether the same is made upon a complaint, a summary investigation, or upon the commission's own motion as in the present case.
WHEREFORE, the writ prayed for is GRANTED and the order of respondents is hereby SET ASIDE.
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