Laguna Water and Laguna Aquatech Resources Corporation (LARC) have become the first utilities outside Metro Manila to join the Retail Aggregation Program (RAP), cutting electricity costs across 92 facilities to improve water service affordability and sustainability in Laguna.
The switch to RAP allows both water utilities to consolidate their electricity demand and source supply from PrimeRES Energy through Meralco’s distribution network. By aggregating 5.2 megawatts (MW) of combined electricity demand—4.3 MW from Laguna Water and 900 kilowatts (kW) from LARC—the companies expect substantial savings in energy expenses, which will directly benefit customers.
The Retail Aggregation Program, launched by the Energy Regulatory Commission (ERC), enables smaller electricity users to access the competitive retail electricity market by pooling their demand. This move empowers utilities like Laguna Water and LARC to negotiate better rates, reduce operating costs, and reinvest savings into improving service delivery.
“This is a small, quiet event,” said Manila Water President and CEO Jocot De Dios during the ceremonial switch held at Laguna Water’s Sta. Rosa headquarters. “But this allows us to tell our regulators and stakeholders that we’re doing the work—looking for ways to make our operations more efficient and sustainable.”
He emphasized that energy remains one of the largest cost drivers in water operations. “We still have more to do. We need to connect other facilities and keep pursuing initiatives with our partners. Collaborations like these put sustainability front and center in water services,” De Dios added in a statement published in Manila Water’s website.
Laguna Water is a joint venture between Manila Water Philippine Ventures and the Provincial Government of Laguna. It serves several cities and municipalities, including Santa Rosa, Cabuyao, Biñan, Pagsanjan, and Calauan, as well as real estate developments such as BellaVita and Amaia.
LARC, meanwhile, is a joint venture between Manila Water and the Laguna Water District. It operates the water supply systems in Los Baños, Bay, Victoria, and Nagcarlan. Through RAP, 25 of its facilities are now covered under the new power contract.
For the ERC, the expansion of RAP in Laguna sets an important precedent.
“We are elated to see the RAP expanding beyond Metro Manila. With Laguna Water and LARC following Manila Water’s lead, we see rising momentum that will take the Philippine energy sector to a more competitive and consumer-driven future,” ERC Chairperson and CEO Monalisa Dimalanta said in a statement posted on ERC’s Facebook page.
She reaffirmed the Commission’s commitment to ensuring that all consumers—whether households or institutions—can benefit from the power of choice. “This strengthens our resolve to deliver real savings through retail competition,” Dimalanta added.
By reducing power costs, Laguna Water and LARC are also lowering barriers to access for communities and businesses that depend on reliable water supply. The savings from this electricity shift will help both utilities maintain affordable rates while funding infrastructure and environmental upgrades.
The initiative also highlights how government policy, private sector innovation, and local government support can converge to deliver long-term benefits for the public.
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