Retail power mart prices down as customers switch suppliers

The spike in power customers choosing their electricity suppliers helped slash the average retail market prices in the first quarter of the year. 

In a report released on Thursday, the Energy Regulatory Commission (ERC) said the Retail Electricity Supply (RES) prices ranged from P3.57 per kilowatt-hour (kwh) to P7.67/kWh.

With an average of P5.49/kWh, it was significantly lower than the 2023 average generation charges of Distribution Utilities (DU).

Notably, the ERC report compared the first-quarter data to that of the full year 2023.

As of press time, the regulator has yet to release the comparative data from the first quarter of 2023. 

“We are optimistic that the retail market will continue to grow as the Commission addresses the issues on market concentration with continuous and more diligent monitoring to prevent and penalize anti-competitive behaviors,” ERC chairperson Monalisa Dimalanta said. 

With the implementation of more consumer choice programs nationwide, the Commission has received several applications for RES licenses from non-affiliated entities.

During the period, the Manila Electric Co. remained the top Retail Electricity Supplier (RES) in customer numbers, while the Aboitiz Group had the highest market share in terms of demand.

The Competitive Retail Electricity Market (CREM) and Green Energy Option Program (GEOP) saw increased participation, with CREM customers growing from 1,918 in 2022 to 1,999 by March 2024 and GEOP customers reaching 330.

The Ayala Group leads the GEOP market, supplying 49 percent of its demand.

Sixty percent of eligible customers now use CREM, and ERC has licensed 48 RES and 29 local RES.

With these developments, the ERC said market concentration declined as more customers switched suppliers.

“This is a clear sign of increasing competition in the retail market which should only lead to better choices for our consumers,” Dimalanta said.