Manila Water pioneers contestable market shift

Razon-led Manila Water Company, Inc. has become the first entity to transition under the Energy Regulatory Commission’s (ERC) expanded Retail Aggregation Program (RAP), shifting ten of its facilities with a combined demand of 500 kilowatts to the contestable market.  

The RAP, implemented under the Electric Power Industry Reform Act of 2001 (EPIRA), allows multiple end-users with consumption below 500 kilowatts to aggregate their demand and contract with a preferred power supplier. 

Manila Water’s transition primarily covers sewage treatment plants within the Manila Electric Co. franchise area.  

“Manila Water is proud of trailblazing with the government to improve the lives of its customers. Working together with the ERC to introduce innovative amendments to its Retail Aggregation Program, we are able to expand customer choice and lower power rates through negotiated tariffs,” Manila Water President and CEO Jocot de Dios said over the weekend.  

The ERC facilitated the transition through Resolution No. 13, Series of 2024, which introduced new rules allowing metered facilities under the same owner or business category within a franchise area to combine their demand to meet the 500-kilowatt threshold.  

"By leading this breakthrough, we not only secure cost-efficient energy to run our water and wastewater treatment plants, which will ultimately benefit our customers, we are also paving the way for a more sustainable and competitive energy market that benefits the country," De Dios added.

ERC data showed that average retail market prices in 2024 stood at P5.77 per kilowatt-hour, with the lowest price recorded at P3.50 per kilowatt-hour.

More entities are expected to transition to the contestable market under the RAP in the coming weeks.

"It is exciting to see more consumers gaining access to the benefits of exercising their power of choice," ERC Chairperson and CEO Monalisa C. Dimalanta said. "This inspires us at the ERC to work even harder towards promoting this power and protecting consumer interests."