The new threshold, which took effect on June 26, 2026, allows businesses with an average monthly electricity demand of 100 to 499 kW to select their own retail electricity supplier (RES) instead of relying solely on their distribution utility.
The change marks the fourth phase of the Retail Competition and Open Access (RCOA) framework, which seeks to promote competition and give electricity consumers greater control over their power purchases.
Wider market access
At a forum organized by the ERC and COREnergy Inc., the retail electricity arm of Vivant Energy, on Oct. 8, regulators and industry representatives discussed how businesses could benefit from the expanded market.
Under the Retail Aggregation Program (RAP), smaller establishments that do not individually meet the 100-kW requirement may combine their electricity demand to qualify for participation.
The contestability threshold has progressively declined from 1 megawatt (MW) when RCOA began in 2013 to 500 kW in 2020 and 100 kW this year.
ERC Energy Regulation Office Contestable Market Division chief Chiara Angela Blanco conveyed the message of ERC chair Francis Saturnino C. Juan on the significance of the change.
"The lowering of the contestability threshold to 100 kilowatts is more than a regulatory milestone, it is a milestone for Filipino consumers."
"More Filipino electricity consumers are being given the opportunity to decide how they purchase their electricity. This is the power of choice," Blanco added.
Managing power costs
The expanded eligibility comes as businesses face pressure from rising production expenses, inflation and changing consumer demand.
COREnergy president Francis del Val said the company was working with newly eligible businesses seeking greater control over electricity expenses.
"At COREnergy, we are proud to earn the trust of Phase 4 contestable customers, businesses that are spending upwards of PHP 500,000 every single month on electricity," he said.
COREnergy currently serves 88 businesses across 144 accounts, representing 90.8 MW in peak capacity.
Its customers include DEDON Manufacturing, JEG Tower and McDonald's Philippines, which has 36 participating restaurants in Cebu and Negros Occidental. Of these, 32 smaller branches entered the competitive market through RAP.
Business opportunities
Representatives of Villa Escudero also attended the forum to share their experience in choosing COREnergy as their electricity supplier and managing their power requirements.
Del Val said COREnergy would continue assisting businesses in determining their eligibility and navigating the process of switching suppliers.
"Our ultimate goal is simple: to ensure no Philippine business gets left behind."
The ERC's lower threshold gives more enterprises an opportunity to compare electricity suppliers, evaluate contract terms and explore potential savings, although actual benefits will depend on their consumption patterns and supply agreements. —Ed: Corrie S. Narisma
