By Benjamin Cuaresma
MANILA — More electricity consumers are now gaining access to competitive power suppliers after the Energy Regulatory Commission (ERC) lowered the contestability threshold under the Retail Competition and Open Access (RCOA) program, marking another milestone in the government’s effort to liberalize the country’s electricity market.
Effective June 26, the minimum electricity demand required to participate in the RCOA program has been reduced from 500 kilowatts (kW) to 100 kW, allowing a significantly larger number of commercial establishments, institutions, and organized consumer groups to choose their preferred electricity supplier instead of relying solely on their distribution utility.
The same 100-kW threshold now also applies to the Retail Aggregation Program (RAP), enabling smaller electricity users—including residential communities—to combine their electricity demand and collectively negotiate more competitive power rates from licensed retail electricity suppliers.
ERC Chairperson and Chief Executive Officer Francis Saturnino Juan described the development as a major step toward democratizing consumer access to the competitive electricity market.
“For the first time, residential communities are participating in the competitive retail market through aggregation, extending the power of choice beyond large corporations and industrial customers to ordinary households,” Juan said.
The ERC reported that 77 new contestable customers—58 from Luzon and 19 from the Visayas—are scheduled to make their initial switch to retail electricity suppliers under the expanded program, increasing the total number of participating customers to 96.
Meanwhile, 11 retail aggregation groups, including residential consumers in Luzon, are preparing to enter the program, bringing the total number of aggregated groups to 40.
The expansion is expected to encourage stronger market competition, improve service quality, attract new investments in the energy sector, and provide consumers with greater flexibility in managing electricity costs.
According to the ERC, the initiative advances the objectives of the Electric Power Industry Reform Act (EPIRA) by promoting transparency, competition, and consumer empowerment in the country’s power industry.
The RCOA program was first introduced in 2013 for large electricity users consuming at least one megawatt of power each month. The eligibility threshold was subsequently lowered to 750 kW in 2016, 500 kW in 2020, and now 100 kW, reflecting the government’s gradual expansion of consumer participation in the competitive electricity market.
Despite the progress, the ERC acknowledged that additional reforms are needed before ordinary households can fully enjoy retail competition nationwide. Among the challenges identified are the modernization of metering systems, technical infrastructure upgrades, and other operational requirements necessary to support a broader retail electricity market.
Energy officials said a roadmap outlining the next phase of the RCOA expansion—including the eventual inclusion of more residential consumers—is expected to be released later this year.
The ERC expressed optimism that continued reforms will eventually allow more Filipino households to benefit from greater supplier choice, competitive electricity rates, and improved service quality in the years ahead.
ia/xf
