THE Energy Regulatory Commission (ERC) has lowered the electricity consumption threshold to 100 kilowatts (kW) from the 500 kW average monthly peak demand to allow more end-users to choose their electricity supplier.
The new threshold will take effect on June 26, 2026, paving the way for more medium-sized enterprises and institutions to directly choose their electricity suppliers or aggregate their demand under the Retail Aggregation Program (RAP).
‘By expanding retail access to more end-users, we are promoting genuine consumer choice and driving competition that can lead to better prices, improved service quality, and innovation in the power sector,’ said ERC Chairperson and CEO Atty. Francis Saturnino C. Juan.
The commission has opted for a phased and coordinated approach to ensure market readiness and operational stability. The eight-month transition period before effectivity allows Distribution Utilities (DUs) and Retail Metering Service Providers (RMSPs) sufficient time to procure and install compliant metering facilities.
This approach also addresses key concerns raised by stakeholders during the public consultations held in September, particularly on the availability of the DUs’ Advanced Metering Infrastructure, procurement timelines, and potential stranded capacities from existing Power Supply Agreements (PSAs).
In line with this, the ERC has also amended and issued the new Rules to Govern the Implementation of Advanced Metering Infrastructure (AMI) by DUs and ERC-authorized entities, which will guide the rollout of smart metering systems across the country.
The ERC said it will closely coordinate with the Department of Energy (DOE) and the Independent Electricity Market Operator of the Philippines (IEMOP) to ensure that billing, registration, and settlement systems are ready to accommodate the increased number of retail customers and transactions.
To guide the transition, the ERC will prepare and publish a Comprehensive Roadmap detailing the phased implementation of customer choice programs-including RCOA (Retail Competition Open Access), RAP, and the Green Energy Option Program (GEOP)-up to eventual household-level participation.
Currently, the retail market records over 2,300 customers who have switched under RCOA and 37 Retail Aggregated Groups (RAGs) with a combined demand of nearly 31 megawatts (MW), indicating growing confidence and readiness among consumers to engage in retail competition.
‘Lowering the contestability threshold to 100 kW and implementing it in a deliberate and orderly fashion marks a significant advancement in unlocking the full potential of open access and consumer choice in the Philippines. This move underscores our commitment to fostering a fair, competitive, and transparent electricity market that delivers enduring benefits to Filipino consumers,’ Juan said.