July 2026

Important Updates on TNVS and Non-Internal Combustion Engine (Non-ICE) Public Transport Vehicles

The LTFRB recently issued Memorandum Circular No. 2026-049, which establishes a revised regulatory framework for Transportation Network Vehicle Service (TNVS) units and non-internal combustion engine (non-ICE) public transport vehicles(this includes EVs).

The Circular clarifies that, under the Public Service Act, as amended, TNVS units and non-ICE public transport vehicles are excluded from the definition of public utility vehicles (PUVs) and, accordingly, are not classified as public utilities. This clarification is significant because the Public Service Act, as amended, confines nationality restrictions to public utilities. In that sense, the Circular supports the position that TNVS units and non-ICE public transport vehicles are no longer subject to the nationality restrictions applicable to public utilities, without prejudice, however, to compliance with other applicable laws, regulations, and LTFRB requirements.

At the same time, the Circular makes clear that these vehicles remain subject to government regulation. Both TNVS units and non-ICE public transport vehicles continue to fall within the regulatory and supervisory jurisdiction of the LTFRB as public services affected with public interest.

Effect on existing CPCs

The Circular provides that all existing Certificates of Public Convenience (CPCs) issued to TNVS units and non-ICE public transport vehicles, insofar as they remain valid and subsisting upon the effectivity of the Circular, shall be automatically converted into Authorities to Operate Certificates (ATOCs), without the need for any further application or filing.

Effect on pending CPC applications

Pending applications for the issuance, renewal, substitution, or transfer of CPCs involving TNVS units and non-ICE public transport vehicles shall likewise be processed as applications for an ATOC under the new framework.

Other notable changes:

The Circular also introduces several changes that may be beneficial to operators and drivers:

1. Longer validity of authority to operate:
ATOC for TNVS units shall now be valid for five (5) years

  ATOC for non-ICE public transport vehicles shall be valid for seven (7) years.

2. No prior TNC certification as a condition for ATOC issuance or renewal

In sum, Memorandum Circular No. 2026-049 adopts a revised regulatory framework for TNVS units and non-ICE public transport vehicles in light of the changes introduced by the Public Service Act, as amended. While these vehicles are no longer treated as public utilities, they remain subject to LTFRB regulation as public services affected with public interest.