DOTr: Gov’t now regulates TNC fares

To ensure that fares are just and reasonable, the Department of Transportation (DOTr) yesterday released a new order giving the Land Transportation Franchising and Regulatory Board (LTFRB) the full authority to regulate the fares, rates and related charges of Transport Network Companies (TNCs).

The new Department Order (DO) amends and supersedes an earlier DO issued in 2015 (DO No. 2015-011) allowing TNCs to set their own fares, subject only to LTFRB oversight.

“It's not right. You can’t engage in the business of public transportation and determine your own fares, your own rules," stressed DOTr Secretary Arthur Tugade.

"TNCs have to protect their business but it's the responsibility of the state to protect commuters.”

Under its new DO, the DOTr centralized the regulation of TNCs and their Transport Network Vehicle Service (TNVS) units.

Under the law, the LTFRB regulates and monitors TNCs and TNVS compliance with rules, policies and laws.

The agency is in charge of issuing franchises, setting routes, setting operating conditions and imposing fines, suspensions and cancellations when necessary.

Meanwhile, the LTFRB assured TNCs and the riding public that they will conduct public hearings and consultations before adjusting fares and rates.

“We don't want a repeat of what happened last year when only the TNCs dictated fares and the poor defenseless commuters suffered excessive surges in pricing at peak hours," LTFRB Chairman Martin Delgra III pointed out.

State regulation is necessary in order to ensure that the interests of all parties, most especially the riding public, are protected. DOTr Undersecretary for Road Transport and Infrastructure Tim Orbos reiterated.

"We will regulate to ensure that our commuters will be safe and protected."