Philippines to Allow All Electricity Users to Choose Providers

The Energy Regulatory Commission (ERC) has announced plans to allow all electricity users in the Philippines to choose their power providers by 2031. This initiative, part of a five-year roadmap, aims to gradually lower the eligibility threshold for the Retail Competition and Open Access (RCOA) program.

Currently, the RCOA threshold is set at 100 kilowatts (kW). The ERC plans to reduce it to 50 kW by 2027 and eventually eliminate it entirely by 2031. This move will enable even the smallest households to select their electricity suppliers. It will be supported by smart metering, reliable market data, and enhanced consumer protections.

Expanding Access to Competitive Markets

The ERC recently lowered the threshold from 500 kW to 100 kW. This opened the RCOA program to an estimated 12,000 mid-sized commercial and industrial users. Under the Electric Power Industry Reform Act of 2001, the ERC is mandated to reduce the minimum electricity demand required for consumers to participate in the competitive retail market.

ERC Chairman Francis Saturnino C. Juan emphasized the goal of reaching the household level. He stated that the next phase targets a 50 kW threshold in 2027. This progression will be supported by stakeholder readiness and accelerated approvals for metering projects.

Strengthening Infrastructure and Consumer Protections

To facilitate this expansion, the ERC plans to strengthen consumer protections for small contestable customers. They will adopt a national Advanced Metering Infrastructure roll-out plan. The Independent Electricity Market Operator of the Philippines will establish a centralized metering data hub. It will serve as a neutral platform for market data.

The ERC highlighted the importance of data management as retail choice expands to millions of small customers. By 2028, the central data platform will launch its initial registry services. Smart meter deployments will begin in 2029. Pilot programs will be introduced in condominiums, subdivisions, and housing cooperatives. These will allow residents to collectively switch suppliers.

If targets are met, the threshold will be further reduced to 30 kW. This will extend access to small commercial establishments and large households. By 2031, all households will have the right to choose their electricity retailer upon smart meter installation.

Progress and Challenges Ahead

As of August 2026, 2,692 contestable customers and 311 retail aggregated groups had switched suppliers under the RCOA framework. The ERC emphasized that success hinges on supporting infrastructure. This includes smart meters, a trusted data hub, competitive metering services, and robust consumer protections.

Smart Meter Rollout and Collective Switching

Smart meter installations will begin in 2029, with pilot programs in residential areas. These programs will enable groups of residents to combine their electricity demand and switch suppliers together. This collective approach will be first tested in condominiums, subdivisions, and housing cooperatives.