ERC shares updates on RAP expansion, fuel cost audits in transition briefing

At a media briefing held July 18, outgoing Energy Regulatory Commission (ERC) Chair Monalisa Dimalanta outlined consumer-focused initiatives that the incoming leadership is expected to carry forward—chief among them, expanding the Retail Aggregation Program (RAP) and concluding a nationwide fuel cost audit that may yield refunds.

While the RAP was introduced under her term, Dimalanta said the next step is to unlock its benefits for more Filipinos, especially those in condominiums, subdivisions, and low-cost housing. The program allows electricity users to consolidate demand and negotiate cheaper rates with power suppliers, bypassing utilities and cooperatives.

According to Dimalanta, early adopters such as PLDT and Smart have enjoyed savings of up to PHP 2/kWh through RAP.

“Alam niyo yung tipid ng nagdidiretsyong kontrata can be as much as PHP 2 lower doon sa tina-charge ng distribution utility,” she noted. (“You know, the savings from direct contracting can be as much as PHP 2 lower than what distribution utilities charge.”)

More significantly, RAP is seen as a “staging area” for a long-term reform under the Electric Power Industry Reform Act (EPIRA): lowering the threshold of the contestable market to eventually allow individual households to choose their power providers.

To build market readiness, the ERC plans to roll out a road map over the next two years.

Meanwhile, Dimalanta devoted significant time to the ERC’s ongoing fuel cost audit, a sweeping review of fuel pass-through charges made by power firms. Launched in late 2022, the audit revealed that many utilities failed to demand or verify fuel invoices from generators.

This lack of compliance undermines safeguards meant to ensure that only actual or capped fuel costs are passed on to consumers. The ERC has so far issued 40 show cause orders to GenCos and is reviewing their submissions.

“Target namin is within the year matapos… we can issue the orders for refund or if there is basis for imposition of penalties,” she added. (“Our target is to finish within the year… so we can issue refunds or, where appropriate, impose penalties.”)

With WESM prices also easing in May due to improved market conditions, the ERC reported a downward adjustment in generation charges across most regions, except in off-grid areas. This, according to a June 18 ERC announcement, was driven by stronger supply margins, lower coal prices, and favorable forex rates.

As she prepares to exit on August 8, Dimalanta said she hopes the next ERC leadership will sustain these efforts, noting that a stable and competitive power market is critical to long-term consumer welfare.

What are your thoughts on ERC’s efforts to lower electricity costs through fuel audits and demand aggregation? Should retail access be expanded to more households sooner? Join the discussion.

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