Philippines Expands Retail Power Choice for Businesses

The Philippines is making significant progress toward electricity market liberalization, with the retail aggregation program under the Wholesale Electricity Spot Market (WESM) registering steady growth as of mid-2025.

According to the Independent Electricity Market Operator of the Philippines (IEMOP), 20 aggregated groups have registered as of June—19 in Luzon and one in the Visayas—reflecting growing interest from contestable customers in choosing their electricity suppliers.

The retail aggregation model allows small and medium businesses such as banks, resorts, and commercial establishments to pool their electricity demand, enabling them to negotiate better rates and services from retail electricity suppliers.

“Effectively, we are moving closer and closer to our ultimate goal,” said Engr. Isidro E. Cacho Jr., IEMOP vice president for trading operations. “Even us, as end consumers, may eventually be able to choose our own electricity supply at a negotiated price.”

Retail electricity transactions now account for 24.37% of the total electricity market, an increase from 22% in 2024, according to IEMOP data, indicating a rising trend in business participation in the contestable market.

Mindanao has yet to register its first aggregation group, but IEMOP officials view current developments as strong indicators that consumer-level market engagement is expanding nationwide.

Full household-level access remains a long-term objective, but officials stress that infrastructure upgrades—particularly automated metering systems—are necessary before this can be realized.

Regulatory backing from the Energy Regulatory Commission (ERC) and other agencies will also play a key role in supporting this transition, although a specific timeline for nationwide retail access has not yet been set.

The retail aggregation initiative is part of broader reforms designed to open the Philippine energy sector, improve service delivery, and reduce electricity costs through increased competition.

In parallel, the country’s Renewable Energy (RE) Market has reached a key milestone with the issuance of more than 50 million Renewable Energy Certificates (RECs) as of July 1.

“The RE Market enables generators to monetize renewable energy production while allowing suppliers to meet compliance targets efficiently,” said Rica Cagnayo, IEMOP’s Market Simulations and Analysis lead.

The RE Market, launched in December 2024, supports compliance with the Renewable Portfolio Standards (RPS), which mandate suppliers to source a growing portion of electricity from clean sources such as solar, wind, hydro, and biomass.

RECs serve as verification of compliance and are directly tied to actual energy output from certified renewable plants. The RPS obligation was increased by 2.52% in 2023, intensifying the demand for clean energy sourcing.

According to IEMOP, renewable sources supplied 22% of the Philippines’ total electricity generation in June 2025, underscoring the sector’s growing role in the national grid.

Both the retail aggregation and RE Market milestones underscore ongoing efforts to modernize the Philippine power sector, expand consumer choice, and promote sustainable energy solutions.