100-kW threshold widens power choice

More Filipino businesses can now choose their electricity suppliers after the government lowered the contestability threshold to 100 kilowatts (kW), giving enterprises greater control over a major operating cost.

Implemented on 26 June, the new threshold marks Phase 4 of the Retail Competition and Open Access framework. Businesses with average monthly demand of 100 to 499 kW can directly choose a Retail Electricity Supplier, while smaller firms can participate through the Retail Aggregation Program.

Do due diligence

But the Energy Regulatory Commission (ERC) is urging businesses to do their due diligence before switching suppliers.

Atty. Chiara Angela Blanco, chief of the ERC’s Contestable Market Division, said businesses should verify that prospective suppliers are duly licensed and compare their offers through the ERC platform.

“From there, you can reach out to suppliers and compare their offers. You shouldn't just stick to one supplier at the start. You need to do your research and compare your options,” Blanco told the DAILY TRIBUNE.

Blanco said the ERC is also working on a platform that would allow businesses to compare indicative prices based on suppliers’ submissions.