Senator Sherwin Gatchalian urged the Energy Regulatory Commission (ERC) to accelerate and fully implement lower retail competition and open access (RCOA) threshold to enable consumers to enjoy competitive electricity pricing.
“Lowering the threshold from 500 kilowatts to the household level would further enhance competition and consumer choice, promoting greater reliability and affordability of electricity and translating into even bigger savings for consumers,” said Gatchalian.
The senator made the statement following the ERC’s report that consumers using electricity services from retail electricity suppliers (RES) generated savings of around P50 billion as of June this year compared to the same period in 2023.
RCOA is a framework designed to promote competition in the retail electricity market that allows consumers to choose their retail electricity suppliers and not be dependent on the contracted supply by their distribution utilities.
Under the RCOA structure, which became effective in June 2013, contestable customers, or those electricity end-users with monthly average peak demand falling within the threshold of contestability as determined by the ERC have a choice to select a supplier of electricity.
In March this year, the ERC approved the eligibility threshold for participation in the retail market in Mindanao pegged at an average monthly peak demand of at least 500 kilowatts (kW) for the 12 preceding months, consistent with the threshold established in Luzon and Mindanao.
The ERC is now considering lowering the threshold to 100 kWh a month, which means more electricity end-users may qualify for the program.
“We expect more consumers to exercise the flexibility to switch suppliers as soon as ERC lowers the threshold. This will in turn enhance the competitiveness of many of our local businesses supportive of economic growth,” Gatchalian said.
In addition to lowering the threshold, the ERC should also help enable consumers and other market players to switch suppliers with minimum difficulty.
