The Energy Regulatory Commission (ERC) has lowered the contestability threshold from 500 kilowatts to 100 kilowatts, allowing more electricity consumers to choose their own power supplier beginning June 26, 2026.

The ERC said the new threshold expands access to the competitive retail electricity market under Retail Competition and Open Access (RCOA) and the Retail Aggregation Program (RAP), marking a major step in the implementation of the Electric Power Industry Reform Act of 2001.

RCOA allows qualified electricity users to directly contract with their preferred Retail Electricity Supplier instead of relying only on their default supply arrangement.

With the lower threshold, more medium-sized commercial establishments, schools, hospitals, office buildings, hotels, manufacturing facilities, and other electricity users may now participate in the competitive retail market.

The ERC said the change also makes aggregation a more viable option for households and smaller consumers that do not individually meet the 100-kilowatt requirement.

Through the RAP, smaller users may combine their electricity demand and participate as a group, allowing them to collectively access supplier choice.

Under the 100-kilowatt threshold, 77 contestable customers are scheduled for their initial RCOA switch, including 58 in Luzon and 19 in the Visayas. This brings the total number of initial RCOA switches across all threshold levels to 96 customers.

Meanwhile, 11 Retail Aggregated Groups, including household-level consumers, are scheduled for their initial switch under the RAP. All are located in Luzon, bringing the total number of initial RAP switches to 40 Retail Aggregated Groups.

“The lowering of the contestability threshold to 100 kilowatts is more than a regulatory milestone—it is a milestone for Filipino consumers,” ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said.

Juan said residential communities are participating in the competitive retail market through aggregation for the first time, extending supplier choice beyond large corporations and industrial customers.

“This reform empowers consumers to seek electricity solutions that best fit their needs while encouraging suppliers to compete through better prices, innovative products, and improved customer service,” he said.

The ERC said broader market participation is expected to encourage suppliers to become more efficient and responsive while giving consumers access to more competitive electricity offerings.

“Competition works best when more consumers are able to participate,” Juan said.

The commission also recognized the collaboration of the Department of Energy, Independent Electricity Market Operator of the Philippines, Retail Electricity Suppliers, Distribution Utilities, and other industry stakeholders in preparing the market for the new threshold.

The ERC said it will continue to oversee the expanded retail market through consumer protection mechanisms, market monitoring, and responsive regulation.

How can expanded power supplier choice help Filipino consumers secure more competitive and reliable electricity service?

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