Consumers within a contiguous area with an electricity average peak demand is at least 500 kilowatts (kW) can join together to experience lower power rates following the pilot implementation of Energy Regulatory Commission’s (ERC) Retail Aggregation Program.
“The Retail Aggregation program will encourage competition among Retail Electricity Suppliers, and with competition, consumers will have the power to choose from among the electricity suppliers that offer better rates and better services,” ERC Chairperson and CEO Agnes Devanadera said in a statement.
The Retail Aggregation program is a scheme where two or more end-users within a contiguous area are joined together and will share the same benefits of contestable customers in the Retail Competition and Open Access (RCOA) program.
ERC earlier said that it’s not yet inclined to lower the 500 kW threshold for the RCOA.
The program is set to take full effect on December 26, 2022, in areas where the RCOA scheme is also operational and effective.
The pilot implementation of the program is a partnership between the University of the Philippines Diliman campus and Manila Electric Co. (MERALCO) which signed a Memorandum of Understanding (MOU) on Friday, June 24.
“With their partnership, we hope that the electricity consumers will be more enlightened about the benefits of retail aggregation which ultimately is for the consumers to have the power to choose from among the electricity suppliers that offer better rates and better services,” Devanadera said.
As of April 2022, there are 1,897 contestable customers with a total demand of 3,924 megawatts who are currently experiencing lower rates in the retail market with a weighted average generation rate of Php 4.05 per kW hour.
Under the RCOA, contestable customers within the threshold can directly negotiate and contract with their preferred retail electricity suppliers.