The energy regulator will lower the threshold for consumer choice in the electricity market to 100 kilowatts in June 2026 to allow thousands of medium-sized enterprises to select their own power suppliers.
The Energy Regulatory Commission (ERC) announced that the threshold for the Competitive Retail Electricity Market will decrease from the current 500 kW average monthly peak demand effective June 26. The expansion follows the mandate of the Electric Power Industry Reform Act of 2001 to deregulate the power industry and empower consumers.
As of August 2025, the commission identified about 12,115 eligible end-users across Luzon, Visayas and Mindanao within the 100 kW to 499 kW range. The shift has prompted power generators and retail electricity suppliers to prepare for a surge in new customers.
ERC chairperson Francis Saturnino Juan said the initiative aims to foster a fair and transparent market. “By expanding retail access to more end-users, we are promoting genuine consumer choice and driving competition that can lead to better prices, improved service quality and innovation in the power sector,” Juan said.
The transition includes strict administrative deadlines for those looking to switch providers. The ERC stated that any end-users or aggregated groups intending to switch by the June 26 start date must submit a letter of intent by Jan. 30. Those who miss the January deadline may still file until June, but their switch date will be delayed by at least 90 days.
Industry leaders expressed optimism regarding the expansion. Meralco senior vice-president and head of MPower Redel Domingo called the lower threshold a “major step” in giving businesses greater flexibility over their energy strategies.
MPower, the retail supply arm of Manila Electric Co., leads the market and supplies 651 competitive end-users, representing roughly 27 percent of the total market.
COREnergy head of sales Marko Sarmiento said the change would “open up the space dramatically.” The commission is coordinating with the Department of Energy and the Independent Electricity Market Operator of the Philippines to ensure billing and settlement systems can handle the increased transaction volume.
The retail market includes more than 2,300 customers and 37 retail aggregated groups with a combined demand of nearly 31 megawatts. The ERC plans to publish a roadmap detailing future phases of the program, which may eventually include participation at the household level.
