RCOA energy customers save P18.57B in 2024
- March 6, 2025
In 2024, energy consumers collectively saved an estimated P18.57 billion with the Retail Competition and Open Access (RCOA) program, which allows eligible customers with a monthly peak demand of at least 500 kilowatts (kW) to select their preferred electricity supplier
A mandate of the Republic Act 9136, also known as the Electric Power Industry Reform Act of 2001 (EPIRA), RCOA liberalizes and demonopolizes the electricity distribution industry. It fosters robust competition among power suppliers in the Competitive Retail Electricity Market (CREM) and gives end users the freedom of choice.
“It comes down to control over costs,” said Monalisa Dimalanta, chairperson of the Energy Regulatory Commission (ERC). “If businesses can contract for their own power supply, they have more control over this cash flow and more predictability of their expenses.”
“The implementation of RCOA has transformed the Philippine energy sector by empowering consumers with choices and driving investment and competition in the electricity market,” Dimalanta continued.
(Also read: Key insights into RP energy sector from industry leaders)
Empowering more consumers
When RCOA was implemented in 2013, the eligibility threshold was set at one megawatt. This was lowered to 750 kW in 2016 and reduced to the current 500 kW in 2020.
Last year, the ERC said it was considering further lowering the open-access threshold to 100 kW a month by 2027, a move urged by Senator Win Gatchalian.
“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.
“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,” the senator continued.
Dimalanta said the ERC is still formulating a roadmap indicating the timeline and ideal conditions for lowering the RCOA threshold to the household level. Educating consumers is also key to unlocking the benefits of the RCOA program.
“The energy literacy campaign we are launching this year is fundamental to this so that, as a condition, we will have consumers who will be knowledgeable about energy contracting. We want the exercise of the power of choice of suppliers to be an effective one,” Dimalanta shared.
A win for profit and the planet
Since its implementation in 2013, many businesses—both on the consumer and supplier side—have championed the RCOA program.
“Our RE (renewable energy) groups are hardworking and consumers buying from RE really see a positive branding attribute to being supplied by cleaner sources,” Dimalanta said.
Sustainable real estate developer NEO Philippines, for example, reached its net-zero goal four years ahead of schedule. In 2021, it became the world’s first real estate portfolio to receive the International Finance Corporation’s EDGE Zero Carbon certification.
“A critical factor in NEO’s success lies in its collaboration with AboitizPower. Through this enduring partnership, NEO’s entire portfolio is powered by Cleanergy, delivering 100% renewable energy,” the company said in a statement.
AP Renewables, a subsidiary of AboitizPower, has been supplying geothermal power to NEO’s buildings in the Bonifacio Global City since 2013.
(Also read: Renewable Energy Market begins full commercial operations)
A growing market with key players
As of December 2024, the ERC reported that 3,679 eligible end-users reached the contestability threshold, with a total demand of 6,465.30 MW.
Of these, 2,137 are CREM end-users, with a total demand of 4,464.77 MW.
The Aboitiz Group had the largest market share by demand, holding 29.30% of the market, with 1,308.13 MW of demand from its CREM customers.
The Manila Electric Company Group, led by Manny Pangilinan, serves the most CREM end-users—730 in total—with a combined peak demand of 1,129.99 MW.
Who are the key players per region?
In Luzon, there are 1,849 CREM end-users. Of these, 1,550 are within the Meralco franchise area, making up 83.83% of the region’s CREM customers.
In the Visayas, the Visayan Electric Company, Inc. serves 147 out of 261 CREM customers, or 56.32% of the region’s CREM share.
In Mindanao, the Cagayan Electric Power & Light Company, Inc. (Cepalco) has the largest share, serving 12 out of 27 CREM customers, or 44.44% of the region’s Mindanao market.
This greater participation in the RCOA program enhances consumer rights and drives a more dynamic retail electricity market.
Sources:
https://www.erc.gov.ph/Events-Singular/123
https://www.wesm.ph/market-development/retail
https://bilyonaryo.com/2025/03/04/rcoa-saves-consumers-p18-57b-in-2024/brand-news/
https://doe.gov.ph/press-releases/rcoa-commercial-implementation-starts-today
https://www.neooffice.ph/news/neo-achieves-net-zero-carbon-energy-with-aboitizpowers-cleanergy/
