The Energy Regulatory Commission (ERC) has approved the lowering of the contestability threshold for electricity consumers from 500 kilowatts (kW) to 100 kW of average monthly peak demand, in a move expected to simplify access to the Retail Competition and Open Access (RCOA) and Retail Aggregation Program (RAP).

Taking effect on June 26, 2026, the policy will allow medium-sized enterprises and institutions to directly choose their electricity suppliers or participate in retail aggregation groups under the RCOA framework.

ERC Chairperson and CEO Atty. Francis Saturnino C. Juan said the decision “marks a significant advancement in unlocking the full potential of open access and consumer choice in the Philippines,” noting that the measure aims to promote competition and innovation in the power market consistent with the Electric Power Industry Reform Act (EPIRA).

To ensure a smooth transition, the ERC has set an eight-month preparation period for Distribution Utilities (DUs) and Retail Metering Service Providers (RMSPs) to install compliant metering facilities and implement Advanced Metering Infrastructure (AMI). The Commission has also released new guidelines to assist utilities in adopting smart metering technologies across their service areas.

The ERC said it will coordinate with the Department of Energy (DOE) and the Independent Electricity Market Operator of the Philippines (IEMOP) for system updates covering billing, registration, and settlement. A Comprehensive Roadmap will also outline the phased implementation of RCOA, RAP, and the Green Energy Option Program (GEOP) to pave the way for wider consumer participation in the retail market.

As of 2025, more than 2,300 customers have shifted to the retail market under RCOA, while 37 Retail Aggregated Groups (RAGs) account for a combined demand of 31 MW.

How do you think expanding open access to smaller consumers will reshape the country’s electricity market?

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