ERC lowers retail choice threshold to 100 kW
More Filipino consumers will have the freedom to choose their own electricity supplier as the Energy Regulatory Commission (ERC) has lowered the minimum required consumption to 100 kilowatts (kW) from 500 kW.
In a statement, the commission said the lowering of the threshold under the retail competition and open access (RCOA) and the retail aggregation program (RAP) took effect on June 26.
This move, it noted, marked “one of the most significant milestones” of the Electric Power Industry Reform Act of 2001 or Epira as the competitive retail electricity market can now welcome more customers, especially small electricity end-users.
RCOA allows participants consuming at least 100 kW a month to buy cheaper electricity from retailers other than the existing suppliers in their area.
These could include commercial establishments, schools, hospitals, office buildings, hotels and manufacturing facilities among others.
RAP, meanwhile, allows households and smaller consumers that share a common area to consolidate their demand to meet the threshold.
“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 chair and CEO Francis Saturnino Juan said.
“This reform empowers consumers to seek electricity solutions that best fit their needs while encouraging suppliers to compete through better prices, innovative products and improved customer service,” he added.
The ERC reiterated that the expansion of RCOA “remains consumer-focused through robust market oversight, strong consumer protection mechanisms, and responsive regulation.”
So far, under the new rule, 77 contestable customers have been scheduled for their RCOA switch. Eleven retail aggregated groups in Luzon would also be covered by RAP.
