The Energy Regulatory Commission (ERC) has approved amendments to the Omnibus Rules for Customer Choice Programs in the Retail Market, thus easing financial requirements for applicants seeking a Retail Electricity Supplier (RES) license. This was done to invite more players to the retail market.

Under ERC Resolution No. 18, Series of 2025, the Commission reduced the minimum financial capacity threshold for new and existing RES applicants. The revised rules redefine the computation of the Average Expected Annual Expenses (AEAE) to include only operating expenses essential to daily operations.

A RES must now maintain a Tangible Net Worth (TNW) of at least PHP15 million or an amount equal to its AEAE, whichever is greater. The ERC said the change ensures that suppliers have sufficient financial capacity to serve contestable customers while enabling new and smaller players to enter the market under fair and equitable conditions.

The Commission said the amendments aim to simplify compliance, promote fair competition, and encourage wider participation in the retail electricity market. The clarified definitions of total operating expenses and computation methods are expected to improve consistency, transparency, and predictability in meeting regulatory standards.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the resolution supports the Commission’s broader efforts to strengthen the retail market framework amid the country’s evolving energy landscape. “By refining the financial requirements for retail electricity suppliers, we are fostering a more competitive, transparent, and consumer-oriented retail market that upholds the principles of choice and accountability,” he concluded.

Do you think easing financial requirements will attract more players and improve competition in the retail electricity market?

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