Burgundy Corporate Tower is set to shift to the Competitive Retail Electricity Market (CREM) by June, becoming the first customer to do so following new rules that lowered the minimum electricity demand required to join the program.

In a press release by MPower, Burgundy said the move follows the Energy Regulatory Commission (ERC)’s decision to reduce the contestability threshold—the minimum power demand needed to qualify for CREM—from 500 kilowatts (kW) to 100 kW. 

The change allows more commercial buildings to choose their electricity supplier instead of being served exclusively by their local utility. This setup is intended to encourage competition, which can result in better pricing and more flexible contract terms.

Burgundy Realty Corporation and the Burgundy Corporate Towers Office Owners Association, Inc. entered into power supply agreements with MPower, the retail electricity supplier of Manila Electric Company (Meralco), following the regulatory update.

Burgundy Corporate Tower Property Manager Bernard T. Ortiz-Luis said the transition gives the building access to competitive pricing without requiring additional capital spending.

“CREM gives us the opportunity to achieve significant cost savings while maintaining operational efficiency,” he said.

Meralco Senior Vice President and MPower Head Redel M. Domingo said lowering the contestability threshold broadens access to the competitive market and gives more businesses flexibility in managing their power costs.

“This milestone demonstrates how recent regulatory reforms are expanding the benefits of competition to a wider range of electricity consumers,” Domingo said.

Burgundy Corporate Tower is a 38-storey, strata-owned office condominium located in Makati City. MPower said it continues to grow its supply portfolio, including renewable energy options, to support customers transitioning under the new CREM rules.

As more buildings become eligible under the lower threshold, how quickly will commercial property owners embrace competition in the electricity market?

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