More Filipino electricity consumers will be able to choose their own supplier of electricity following the effectivity of the 100-kilowatt (kW) contestability threshold under Retail Competition and Open Access (RCOA) and the Retail Aggregation Program (RAP).
The Energy Regulatory Commission (ERC) said the implementation of the new threshold, pursuant to ERC Resolution No. 22, Series of 2025, marks one of the most significant milestones in the implementation of the Electric Power Industry Reform Act of 2001 (EPIRA).
By lowering the contestability threshold from 500 kW to 100 kW, the Commission is expanding access to the competitive retail electricity market to a much broader segment of electricity consumers.
Qualified medium-sized commercial establishments, schools, hospitals, office buildings, hotels, manufacturing facilities, and other electricity users may now directly contract with their preferred Retail Electricity Supplier (RES).
More significantly, it has also made aggregation a viable option for households and smaller consumers that individually do not meet the 100-kW requirement by allowing them to aggregate their electricity demand through the RAP, enabling them to collectively enjoy the benefits of supplier choice for the first time.
The initial implementation reflects growing confidence in the competitive retail market.
Under the 100-kW threshold, 77 contestable customers are scheduled for their initial RCOA switch—58 in Luzon and 19 in the Visayas—bringing the total number of initial RCOA switches across all threshold levels to 96 customers.
Meanwhile, 11 Retail Aggregated Groups (RAGs), including consumers at the household level, are scheduled for their initial switch under RAP—all located in Luzon—bringing the total number of initial RAP switches to 40 RAGs.
ERC Chairperson and CEO Atty. Francis Saturnino Juan described the implementation as a landmark reform that places consumers at the center of the country’s evolving electricity market.
“The lowering of the contestability threshold to 100 kilowatts is more than a regulatory milestone—it is a milestone for Filipino consumers. For the first time, residential communities are participating in the competitive retail market through aggregation, extending the power of choice beyond large corporations and industrial customers to ordinary households,” Juan said.
“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.”
“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,” the ERC chief explained.
He added that a broader competitive market will encourage continued innovation and investment across the electricity sector while strengthening consumer welfare.
“Competition works best when more consumers are able to participate.”
“Competition works best when more consumers are able to participate. As the market expands, electricity suppliers are encouraged to become more efficient and responsive, while consumers benefit from greater choice, enhanced service quality, and more competitive electricity offerings,” Juan stressed.
“This is the direction envisioned under EPIRA—an electricity sector that is transparent, competitive, and ultimately driven by the interests of the Filipino people,” he added.
The ERC likewise recognized the continuing collaboration among the Department of Energy (DOE), the Independent Electricity Market Operator of the Philippines (IEMOP), Retail Electricity Suppliers (RES), Distribution Utilities (DUs), and other industry stakeholders in preparing the market for this milestone.
The Commission reaffirmed its commitment to ensuring that the expansion of RCOA remains consumer-focused through robust market oversight, strong consumer protection mechanisms, and responsive regulation.
As more Filipinos gain access to supplier choice, the ERC will continue to foster a competitive, transparent, and reliable electricity market that delivers affordable, dependable, and sustainable energy services for all.
