Philippines ERC proposes roadmap to open electricity market to households by 2031

The Philippine Energy Regulatory Commission (ERC) has released a draft roadmap aiming to expand the Retail Competition and Open Access (RCOA) program to all consumers, including households, by 2031. The proposal outlines a gradual reduction of the current 100-kilowatt (kW) eligibility threshold to 50 kW in 2027 and 30 kW in 2030, with the goal of removing the threshold entirely by 2031.

To facilitate this transition, distribution utilities will be required to submit smart meter rollout plans by the fourth quarter of 2027. The roadmap also includes the introduction of competitive third-party metering services by 2028 and residential aggregation pilot programs in 2029. The Independent Electricity Market Operator of the Philippines is expected to establish a centralized metering data hub to standardize consumption data and simplify the switching process.

While the plan aims to increase competition and consumer choice, the ERC noted that opening the market could result in significant stranded costs for distribution utilities. Public comments on the draft roadmap are being accepted until October 30.