The Philippine Competition Commission (PCC) has raised concerns over structural and operational barriers that continue to dampen genuine competition in the country’s retail electricity market, following a strategic policy dialogue with the Independent Electricity Market Operator of the Philippines (IEMOP).
Presenting initial findings from its market study, the PCC said entrenched industry structures—particularly vertical integration between power generators and their affiliated retail electricity suppliers (RES)—give dominant players a built-in advantage.
These arrangements, often reinforced through bilateral contracts, spot market participation, or retail supply agreements, can leave independent retailers with limited access to power supply.
“The current structure may constrain meaningful competition and limit consumer choice,” the commission said, underscoring the need to revisit policies governing vertical integration in the power sector.
The study also highlighted persistent switching barriers among contestable customers. These include low awareness of the retail competition and open access framework under the Electric Power Industry Reform Act, as well as procedural hurdles such as complex documentation requirements and delays in installing retail metering systems.
The PCC further noted a high level of “affiliate switching,” where customers move between suppliers within the same corporate group—an outcome it said does not necessarily indicate real competition.
To address these challenges, the PCC called for reforms to ease market entry for independent RES players and boost consumer awareness.
For its part, IEMOP is preparing for a broader market base ahead of the planned reduction in contestability thresholds by June 2026, while working to streamline switching through digital systems and improved registration processes.
Both agencies signaled plans to strengthen collaboration on data sharing and consumer education, aiming to foster a more competitive and inclusive electricity market.
