The first three months this year have proven cheaper for consumers than in all of 2023 in terms of electricity cost on account of the structure known as retail competition and open access program or RCOA, the Energy Regulatory Commission (ERC) said.
The ERC said retail electricity suppliers (RES) in the first quarter charged consumers from a low P3.57 per kilowatt hour to as high as P7.67 per kWh or an average of P5.49 per kWh.
This was significantly lower than the generation charge levied against consumers by distribution utilities in 2023 in Luzon averaging P7.0665 per kWh and in the Visayas of another P7.7093 per kWh. The generation charge across the Philippines for the period averaged P6.7460 per kWh.
RCOA programs such as the Competitive Retail Electricity Market (CREM) allow businesses to choose their own energy supplier provided they meet the minimum monthly consumption of 500 kilowatt hours.
Also, the Green Energy Option Program (GEOP) permits customers to choose their own renewable energy supplier.
The CREM program in 2023 allowed customers to realize estimated savings of P46 billion because the rates were 23 percent lower than that charged by distribution utilities.
The ERC also said that as of March this year, the total number of registered CREM customers increased from 1,918 in 2022 to 1,999 by March 2024. There are now 330 GEOP customers as well.
The ERC likewise said the Manila Electric Co. and subsidiaries remains the top retail electricity supplier in terms of customers, supplying 678 of the total 1,999 contestable customers.
The Aboitiz Group owns the largest share in terms of demand served, supplying 30 percent of the 4,208 MW totaal demand.
The Ayala Group also leads the market in terms of overall GEOP end-users served and actual demand, supplying 49 percent of total demand.
The ERC also said 60 percent of 3,329 customers are being served under CREM. The remaining 40 percent are yet to choose their own suppliers.
“We are optimistic that the retail market will continue to grow as the commission addresses the issues on market concentration with continuous and more diligent monitoring to prevent and penalize anti-competitive behaviors,” said Monalisa Dimalanta, ERC chairman.
