Consumers could gain access to cheaper electricity and more supplier options if regulators succeed in dismantling barriers that have long stifled switching and weakened real competition in the retail power market.
The Philippine Competition Commission (PCC) and the Independent Electricity Market Operator of the Philippines (IEMOP) are pushing to close these gaps, convening a strategic policy dialogue to confront findings from the PCC’s market study on competition and switching barriers.
Despite the Electric Power Industry Reform Act allowing eligible customers to choose their electricity suppliers, the market remains tilted toward dominant players.
The PCC said on Monday that it found retail electricity suppliers (RES) affiliated with power generators enjoy structural advantages, making it difficult for independent retailers to compete.
If generators prioritize supplying electricity through bilateral contracts, the spot market, and retail supply agreements with their own affiliates, independent players are left with what the commission described as “residual supply.” This setup, the PCC said, may require revisiting policies on vertical integration between generation and retail to enhance competition.
For consumers, the impact is immediate, with limited competition translating to fewer choices and weaker pricing pressure.
Many eligible customers still cannot switch suppliers due to limited knowledge of the process, including technical and documentary requirements and negotiating retail supply contracts. Delays in procuring and installing retail metering systems further slow down switching.
Even when switching happens, the gains are often minimal. The PCC flagged a high level of “affiliate switching,” where customers move between suppliers under the same parent company—an outcome that “may not signify true retail competition.”
Regulators are now preparing for a major market expansion. IEMOP said it anticipates lowering the minimum monthly consumption threshold for contestable customers from 500 kilowatts to 100 kilowatts by June, a move expected to bring more businesses into the retail market and boost participation.
Ahead of this shift, IEMOP is upgrading its central registration system to streamline and automate switching requirements, including the rollout of an electronic-based platform designed to handle a surge in market participants.
Both agencies also signaled plans to boost collaboration, particularly in sharing data and research, and expanding awareness of customer choice programs.