SMALL and medium-sized enterprises (SMEs) can explore alternative electricity supply arrangements to manage operating costs following the lowering of the threshold for participation in the country’s retail electricity market to 100 kilowatts (kW).
Effective June 26, 2026, the new threshold allows businesses with average monthly demand of 100 to 499 kW to choose their own retail electricity supplier, giving them more options as rising production costs and inflation squeeze profit margins.
Smaller establishments that do not individually meet the requirement may participate through the Retail Aggregation Program (RAP), which allows businesses to pool their electricity demand and enter the competitive market collectively.
The change marks Phase 4 of the Retail Competition and Open Access (RCOA) framework, which lowered the threshold from one megawatt in 2013 to 500 kW in 2020 and now to 100 kW.
At a forum led by the Energy Regulatory Commission (ERC) and Corenergy, Inc., the retail electricity arm of Vivant Energy, on Oct. 8, industry representatives discussed the expanded access to the competitive market.
“The lowering of the contestability threshold to 100 kilowatts is more than a regulatory milestone, it is a milestone for Filipino consumers,” said Atty. Chiara Angela Blanco, chief of the ERC Energy Regulation Office’s Contestable Market Division, relaying the message of ERC Chairman Francis Saturnino C. Juan.
The expanded eligibility allows businesses to compare supply offers and select arrangements suited to their consumption patterns, although savings will depend on supplier offers and contract terms.
Corenergy president Francis del Val said businesses spending more than P500,000 monthly on electricity could benefit from additional purchasing options.
The company serves 88 businesses across 144 accounts, representing 90.8 megawatts of peak capacity. Its customers include McDonald’s Philippines, whose 36 restaurants in Cebu and Negros Occidental include 32 smaller branches that joined the market through RAP.
Del Val said Corenergy would continue helping newly eligible businesses assess their eligibility and navigate the supplier-switching process.
For SMEs operating on tight margins, the lower threshold offers another option for managing electricity expenses, though participation does not automatically guarantee lower bills. / KOC