‘Power of choice’ moves closer to homes

Notes on the beat

MANILA, Philippines — “Malayo pa, pero malayo na (Still a long way to go, but we’ve come a long way).”

This phrase has become a powerful reminder of progress, showing that while the finish line may still be far, every step forward is proof of how far the journey has already come.

The same could be said for the country’s retail competition and open access (RCOA) program.

For years, only large electricity users had the privilege to directly negotiate their power supply.

Now, the doors to the retail electricity market are gradually opening wider, bringing more consumers closer to exercising their “power of choice.”

That shift reached a major milestone yesterday, when the RCOA contestability threshold officially dropped to 100 kiloWatts from 500 kW.

The same threshold also took effect for the retail aggregation program (RAP), which enables smaller electricity users to pool their demand and secure deals from their preferred supplier.

With the lower thresholds, more consumers now have the option to break free from being tied to rates charged by power utilities and gain access to more competitive electricity pricing.

For the Energy Regulatory Commission (ERC), this is more than a regulatory milestone; it is a meaningful step forward 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,” ERC chairman and CEO Francis Saturnino Juan said yesterday.

The initial implementation of the lower threshold has already attracted new entrants, with 77 contestable customers – 58 in Luzon and 19 in the Visayas – scheduled for their initial RCOA switch, bringing the total to 96.

Similarly, 11 retail aggregated groups in Luzon, including household consumers, are preparing to enter under RAP, pushing the total number to 40.

Juan expects the expansion of the competitive market to spur stronger innovation and attract more investments across the sector while strengthening consumer welfare.

“This is the direction envisioned under EPIRA (Electric Power Industry Reform Act) — an electricity sector that is transparent, competitive and ultimately driven by the interests of the Filipino people,” he added.

RCOA was first implemented in 2013 for large consumers with a minimum monthly consumption of one megawatt. The threshold was later lowered to 750 kW in 2016 and further reduced to 500 kW in 2020.

ERC director for market operations service Sharon Montañer said the energy regulator is set to release a roadmap this year for the lowering of the RCOA threshold toward the household level.

“There are challenges that need to be addressed before we can go lower, such as technical challenges, particularly on metering,” Montañer told The STAR.

Indeed, much still needs to be done before the “power of choice” finally reaches every Filipino home.

The direction is clear, but turning promise into reality will require sustained action, consistency and real follow-through beyond plans on paper.