The Philippine Competition Commission (PCC) has flagged structural advantages in the power retail sector that could undermine competition, according to a report by MLex. The regulator's concerns center on market dominance and barriers to entry that may prevent new players from competing effectively.
The PCC identified that certain incumbents benefit from vertical integration, control over critical infrastructure, and long-term supply agreements that create uneven playing field. These structural conditions, the commission warned, could lead to higher prices and limited choices for consumers in the retail electricity market.
The findings come as the Philippines continues to implement the Retail Competition and Open Access (RCOA) policy, which aims to introduce competition in the power sector. The PCC's flagging of structural issues suggests that further regulatory measures may be needed to ensure a truly competitive market.