Powering competition, expanding choice

Imagine this: a medium?sized business owner has just completed the construction of a new shop and is ready to open, except for one critical piece: power. Now, instead of filing the usual application with the local distribution utility, the owner enters a very different process.

They are presented with a list of energy providers.  In this new setup, the owner can compare offers, negotiate terms and secure a rate that works for their business. Electricity is no longer a fixed and non-negotiable cost. It can now be actively managed to align with their operational needs and financial goals.

And this is no longer just an idea – it is now a reality. Since June 26, 2026, the Energy Regulatory Commission (ERC) has expanded access to this kind of choice through the implementation of the new 100-kilowatt (kW) contestability threshold under Retail Competition and Open Access (RCOA) and the Retail Aggregation Program (RAP).

ERC, in a statement, said the lowering of the retail contestability threshold from 500 kW to 100 kW is one of the most important milestones in the implementation of the Electric Power Industry Reform Act of 2001 (EPIRA), marking a significant leap toward a more competitive and consumer-centric electricity market.

This expands the qualified participants beyond large industries and major commercial hubs to include small and medium-sized enterprises, schools, hospitals, community institutions and ordinary households – giving them the flexibility to partner directly with a retail electricity supplier (RES) of their choice to meet their specific power requirements.

The benefits also extend to smaller consumers, who are now allowed to pool their demand to meet the 100-kW threshold. By aggregating, neighborhoods and small business clusters can negotiate collectively, enjoying the flexibility offered by RAP, which was previously reserved only for large industries or corporations.

Recent reports said that two residential retail aggregation groups (RAGs) located in San Juan and Quezon City have successfully shifted to their preferred supplier, and the government is expecting more to follow suit.

According to ERC chairperson Francisco Saturnino Juan, “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.”

I agree with the good chairman on this one – in my many years working for the power industry I have seen how it has evolved. I witnessed the evolution from a time when systems were simpler and choices were few, to today – the landscape is becoming more dynamic and responsive to the needs of customers.

When competition grows, it pushes all of us to do better. In many ways, this shift brings us closer to what we have always hoped the industry could be. Suppliers are no longer just providers of electricity – they become partners to their customers. To earn trust, they must go beyond price and offer flexibility, fair terms and energy solutions that truly add business value. Whether it is serving an entire neighborhood or supporting a group of small entrepreneurs, the effort to win customers now comes with a deeper sense of responsibility.

For its part, Meralco – the largest distribution utility in the country – had chosen to embrace this change since it was introduced in 2013. Rather than seeing expanded competition as a disruption, it is viewed as an opportunity to support customers in making informed choices and to continue improving the way services are delivered.

In fact, just recently, Meralco was recognized by the ERC for having the largest number of customer choice participants in Luzon – a testament to the distribution utility’s commitment to empowering consumers and promoting a more competitive electricity market. Meralco is also the first distribution utility to empower smaller end-users to switch to the contestable market through RAP.

Whether a consumer chooses to stay under a traditional regulated rate or move to a competitive retail supplier, Meralco remains steadfast in its core mission: keeping the lights on with reliable and continuous electricity service.

I look forward to seeing how healthy competition can impact and do what it is meant to do – encourage innovation, raise standards and uplift the entire system. But I also believe that for this program to truly make a meaningful difference and for Filipinos to genuinely feel its benefits, it will require sustained collaboration. This effort must bring together not only the regulator, but also the Department of Energy, the Independent Electricity Market Operator of the Philippines and distribution utilities like Meralco, all moving toward a shared vision.

When people are given the power to choose, it uplifts everyone. In this moment for the energy industry, this new development opens the door to a more competitive and transparent market. This fosters solutions that are efficient and responsive to needs and aspirations of consumers.  It is our hope that the true spirit of this program endures- guided by fairness, sustained by collaboration and felt meaningfully in the everyday lives of Filipinos for many years to come.