By Sheldeen Joy Talavera, Reporter
THE Energy Regulatory Commission (ERC) said it is developing a plan to make all power users eligible to choose their electricity providers by 2031.
The ERC said the five-year roadmap will gradually bring down the eligibility threshold for users to qualify for the retail competition and open access (RCOA) program between 2027 and 2031. The RCOA consumption threshold is currently set at 100 kilowatts (kW).
“By 2031, every Filipino electricity end-user, from the largest factory to the smallest household, will have the right and the practical means to choose a supplier, supported by smart metering, trusted market data, and strong consumer protections,” the regulator said.
The ERC recently reduced the threshold from 500 kW to 100 kW, opening up RCOA to an estimated 12,000 mid-sized commercial and industrial users.
At present, captive customers buy electricity from the distribution utility within their franchise area. If they hit the demand threshold, they have the option to switch to another supplier.
Under the Electric Power Industry Reform Act of 2001, the ERC is tasked with lowering the minimum electricity demand required for consumers to participate in the competitive retail market.
ERC Chairman Francis Saturnino C. Juan said the next phase targets lowering the threshold to 50 kW in 2027 as part of a sustained push “until we reach the household level,” supported by stakeholder readiness and accelerated capital project approvals for metering.
The ERC said it intends to strengthen consumer protections for small contestable customers. It also seeks to adopt a national Advanced Metering Infrastructure roll-out plan.
The Independent Electricity Market Operator of the Philippines, the operator of the Wholesale Electricity Spot Market, will established a centralized metering data hub that will serve as a “single, neutral data platform.”
“When retail choice reaches millions of small customers, the market’s main operational challenge is no longer generation or contracting but data: knowing which customer is at which connection point, who their retailer and meter provider are, and what they consumed in each interval,” the ERC said.
By 2028, the eligibility threshold will be kept at 50 kW to give the industry time to adjust, while the central data platform will launch its initial registry services, with the first batch of smart meters due to be deployed.
Smart meter installations will accelerate in 2029, with pilot programs launched in condominiums, subdivisions and housing cooperatives, allowing groups of residents to pool their electricity demand and switch suppliers collectively.
If earlier stages meet performance targets, the eligibility threshold will subsequently be lowered to 30 kW, extending access to the competitive market to small commercial establishments, bakeries and large households.
By 2031, the remaining eligibility threshold will be removed, giving all households the right to choose their electricity retailer once a compatible smart meter is installed.
As of August 2026, 2,692 contestable customers and 311 retail aggregated groups had already switched suppliers under RCOA framework.
“Success depends less on the speed at which thresholds fall than on the strength of what stands behind them: smart meters in place, a trusted central data hub, competitive metering services, financially sound retailers, and consumer protections suited to households,” the ERC said.