The Energy Regulatory Commission (ERC) has lowered the threshold for retail competition and open access (RCOA) from 500 kilowatts (kW) to 100 kW, as reported by Inquirer.net. This development enables more commercial and industrial consumers to directly choose their electricity supplier, fostering competition in the Philippine power market.
The ERC issued a resolution amending the RCOA rules, effectively expanding the number of eligible customers. Previously, only those with a peak demand of at least 500 kW could participate. The new 100 kW threshold will cover a larger segment of the commercial sector, including mid-sized businesses and office buildings.
Industry analysts expect the lowered threshold to intensify competition among retail electricity suppliers, potentially leading to lower rates and better service for end-users. The move aligns with the Electric Power Industry Reform Act's goal of promoting consumer choice and market efficiency.