ERC lowers retail electricity threshold to 100 kW

The Energy Regulatory Commission (ERC) has approved the reduction of the contestability threshold from 500 kilowatts (kW) to 100 kW of average monthly peak demand, expanding access to the Retail Competition and Open Access (RCOA) and Retail Aggregation Program (RAP).

Effective June 26, 2026, the policy will enable medium-sized businesses and institutions to select their electricity suppliers or join retail aggregation groups under the RCOA system.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the decision “marks a significant advancement in unlocking the full potential of open access and consumer choice in the Philippines.”

He added that the move is designed to promote competition and innovation in line with the Electric Power Industry Reform Act (EPIRA).

To support implementation, the ERC has granted an eight-month transition period for Distribution Utilities (DUs) and Retail Metering Service Providers (RMSPs) to install compliant metering systems and deploy Advanced Metering Infrastructure (AMI).

The Commission has also issued new guidelines to assist utilities in rolling out smart metering technologies across their service areas.

The ERC said it will coordinate with the Department of Energy (DOE) and the Independent Electricity Market Operator of the Philippines (IEMOP) to ensure system compatibility for billing, registration, and settlement.

A Comprehensive Roadmap will outline the phased rollout of RCOA, RAP, and the Green Energy Option Program (GEOP), supporting broader consumer engagement in the electricity retail market.

As of 2025, over 2,300 customers have transitioned to RCOA, and 37 Retail Aggregated Groups (RAGs) account for a combined electricity demand of 31 megawatts (MW).