ERC proposes 100 kiloWatts RCOA threshold

MANILA, Philippines — More power consumers may soon choose their own electricity supplier as the Energy Regulatory Commission (ERC) is looking to significantly lower the minimum threshold.

In a draft resolution, the ERC is proposing to reduce the eligibility threshold for the retail competition and open access (RCOA) program to 100 kiloWatts from 500 kW.

The lower threshold, the commission said, is expected to promote a “more dynamic and competitive electricity market.”

The proposal will likewise allow consumers to enjoy competitive rates, enhanced service quality and supply options.

Under the prevailing threshold, only consumers with an average monthly peak demand of at least 500 kW for the preceding 12 months are eligible to contract with any authorized energy supplier on a voluntary basis.

To assess the feasibility and timing of the proposed adjustment, the ERC said it is closely working with the Department of Energy and other relevant stakeholders.

“The commission finds it necessary to align the eligibility thresholds across all customer choice programs to ensure consistency and regulatory coherence,” the ERC said.

The proposed threshold, for instance, mirrors the level currently implemented under the green energy option program, which enables end-users with a minimum monthly peak demand of 100 kW to contract renewable energy supply.

As of end-May, a total of 2,225 retail customers, or about 60 percent of the total, had switched to the competitive electricity market, latest ERC data showed.

Meanwhile, over 12,100 end-users from Luzon, Visayas and Mindanao have already met the minimum 100-kW eligibility threshold.

The commercial launch of RCOA in Mindanao in March last year paved the way for the first contestable customer registrations in the region.

The adoption of a new threshold is consistent with the objectives of the Electric Power Industry Reform Act, which seeks to promote competition and ensure consumer choice with greater participation in the RCOA.

All interested parties may submit their comments on the proposal until Aug. 30.