Growing Participation in Retail Power Market Boosts 2025 Consumer Savings
- January 22, 2026
Consumers who sourced their electricity power directly from qualified suppliers saved about ₱19.25 billion from January to September 2025, according to the Philippine Electricity Market Corp. (PEMC).
PEMC data showed that savings in the first three quarters of 2025 have already surpassed the ₱16.76 billion recorded for the entire year of 2024. The market operator attributed the increase to continued expansion in the competitive retail electricity market, where large users can choose their own suppliers instead of relying on distribution utilities (DUs).
Record Savings And Stable Rates
In the third quarter alone, estimated savings rose to a record ₱9.93 billion for “contestable” customers, or those eligible to buy power from their preferred suppliers. Average generation rates for these users ranged between ₱5.68 and ₱5.75 per kilowatt-hour (kWh), lower than the ₱6.12 to ₱6.66 per kWh billed by DUs.
“Market participation continued to expand in the third quarter of 2025, with total registered contestable end-users increasing to 2,412 from 2,290 in the previous quarter,” PEMC said. These customers represented roughly two-thirds of all qualified end-users with an average peak demand of at least 500 kilowatts over the past year.
Luzon Leads In Market Participation
Luzon accounted for about 86 percent of contestable end-users, while the Visayas and Mindanao contributed 12 percent and 3 percent, respectively. Although Mindanao recorded the highest quarter-on-quarter increase, its overall participation rate remains comparatively low.
The Meralco Group, led by tycoon Manuel V. Pangilinan, maintained its dominant position in the retail market, serving about one-third of all contestable customers. Within Meralco’s franchise area, which covers roughly two-thirds of total retail market consumption, savings were estimated at ₱1.7 billion during the period.
Competitive Retail Electricity Market Expands
The retail electricity market forms part of the government’s effort to introduce competition and lower power costs under the Competitive Retail Electricity Market (CREM) framework. It allows high-demand users to contract directly with licensed retail electricity suppliers, promoting transparency and price efficiency in energy sourcing.
Alongside CREM, the Energy Regulatory Commission (ERC) has been implementing the Retail Aggregation Program (RAP) to widen access to competitive pricing. RAP allows smaller power users to combine their electricity demand to meet the minimum threshold for joining the retail market.
The ERC earlier said the program was designed to “empower institutions, businesses, and now homeowners, to pool their electricity demand and negotiate better rates with suppliers.”
“Through RAP, more Filipinos are taking charge of their energy destiny, bringing us closer to true energy democracy,” the ERC said in a statement last year.
As more industrial and commercial users participate through aggregation, PEMC expects further market expansion and efficiency improvements. Its full-year 2025 retail market assessment report is expected to be released within the first quarter of 2026.
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