The Department of Energy (DOE) welcomed the implementation of the expanded Retail Competition and Open Access (RCOA) and Retail Aggregation Program (RAP), describing the lowering of the contestability threshold to 100 kilowatts (kW) from 500 kW as a significant step toward giving more Filipino consumers greater choice, better value, and more control over their electricity service.
Effective 26 June 2026, qualified electricity consumers with an average monthly demand of at least 100 kW may now directly choose their Retail Electricity Supplier (RES), while smaller consumers, including households, may participate in the competitive retail market by aggregating their electricity demand through the Retail Aggregation Program.
The reform, implemented by the Energy Regulatory Commission (ERC) expands access to the competitive electricity market beyond large industrial users to include a broader range of commercial establishments, institutions, and residential communities.
Energy Secretary Sharon S. Garin said the expansion reflects the government’s continuing commitment to ensuring that the benefits of power sector reforms are increasingly felt by ordinary Filipino consumers.
“Electricity consumers deserve more than reliable power — they deserve the opportunity to choose the service that best meets their needs. Expanding access to the competitive retail electricity market gives consumers greater voice, encourages suppliers to deliver better value, and strengthens competition for the benefit of the Filipino people.”
Secretary Garin emphasized that meaningful competition creates stronger incentives for innovation, efficiency, and customer-focused service across the electricity sector.
“When suppliers compete for consumers, everyone is challenged to perform better. That competition drives innovation, improves service quality, and encourages more competitive electricity offerings. Ultimately, our goal is simple: ensure that every Filipino has access to reliable, affordable, and quality electricity.”
The Secretary likewise underscored that the milestone supports the Department’s vision of Enerhiyang Matatag at Makatao by placing consumers at the center of energy sector reforms while fostering a more transparent, efficient, and responsive electricity market.
The DOE also recognized the close collaboration among the ERC, 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 important transition.
As implementation moves forward, the DOE remains committed to working closely with the ERC and industry stakeholders to strengthen consumer awareness, promote informed participation in the competitive retail market, and ensure that the benefits of competition translate into meaningful improvements in affordability, service quality, and long-term energy security for Filipino consumers.
