The first residential aggregation groups have formally joined the Retail Competition and Open Access (RCOA) program, according to a report by Inquirer.net. This development allows residential customers to band together and choose their electricity suppliers, a significant step in the liberalization of the Philippine power sector.
The RCOA program, initially limited to large commercial and industrial users, was expanded to residential consumers under the government's push for greater competition in the electricity market. Aggregation groups enable smaller households to pool their demand, making them eligible to negotiate directly with power suppliers instead of relying solely on distribution utilities.
Industry observers view this as a positive move toward lower electricity rates and better service options for residential consumers. The Energy Regulatory Commission (ERC) has set guidelines for aggregation, including minimum membership requirements and terms of supply contracts.