The Energy Regulatory Commission (ERC) has unveiled a draft five-year roadmap that will gradually expand retail electricity choice, bringing more competition and supplier options to more power users across the country. Under the proposed schedule, the eligibility threshold for Retail Competition and Open Access (RCOA) will drop from the current 100 kilowatts to 50 kW in 2027, then to 30 kW in 2030, before being completely removed by 2031. Once fully implemented, every household and qualified consumer will be able to choose their own electricity provider or stay with their existing regulated supply.
This policy shift means more consumers will gain the power to negotiate their own power rates and contract terms, rather than relying solely on their local distribution utility. It also opens up a far bigger market for electricity retailers, encouraging better service and potentially more competitive pricing. Key milestones along the way include the launch of competitive metering services in 2028, residential aggregation pilot programs in 2029, and the establishment of a centralized metering data hub to standardize consumption records and make switching providers simpler and more transparent. Distribution utilities will also need to speed up the rollout of smart meters to support these changes.
The ERC acknowledges the expansion could leave distribution utilities facing significant costs from long-term power contracts that may no longer be fully used as customers switch providers. It estimates gross exposure to these so-called stranded contract costs could reach P56.01 billion annually when the threshold drops to 50 kW in 2027, rising to P77.06 billion by 2031 under full market opening. The commission clarifies these are hypothetical figures before mitigation measures are applied, not confirmed losses, and has proposed safeguards such as contract transition plans to ensure these costs are not automatically passed on to consumers who remain with their utility.
Full implementation will still depend on whether metering systems, consumer protection frameworks, and market infrastructure are ready. Stakeholders have until October 30 to submit comments, while public consultations will be held on November 5 for Luzon and November 6 for the Visayas and Mindanao. All feedback will be considered as the ERC finalizes the roadmap.
