Retail choice threshold now 100 kW

Filipino consumers will have the freedom to choose their own electricity supplier as the Energy Regulatory Commission (ERC) has lowered the minimum required consumption to 100 kilowatts (kW) from 500 kW.

In a statement, the commission said the lowering of the threshold under the retail competition and open access (RCOA) and the retail aggregation program (RAP) took effect on June 26.

This move, it noted, marked “one of the most significant milestones” of the Electric Power Industry Reform Act of 2001 or Epira as the competitive retail electricity market can now welcome more customers, especially small electricity end-users.

RCOA allows participants consuming at least 100 kW a month to buy cheaper electricity from retailers other than the existing suppliers in their area.

These could include commercial establishments, schools, hospitals, office buildings, hotels and manufacturing facilities among others.

RAP, meanwhile, allows households and smaller consumers that share a common area to consolidate their demand to meet the threshold.