Gov't maintains deadline for mandatory RCOA

7 February 2017

The Department of Energy (DOE), Energy Regulatory Commission (ERC), and Philippine Electricity Market Corporation (PEMC) agreed to maintain the 26 February 2017 deadline for contestable customers to secure their power supply contracts with any licensed Retail Electricity Suppliers. The requirement is part of the implementation of mandatory Retail Competition and Open Access (RCOA).

Contestable customers - those with monthly average peak demand of at least 1 megawatt (MW) - can now directly choose the supplier for their energy requirement. Subsequently, from 1MW this February, the threshold for qualifying contestable customers will go down to 750 kilowatts (kW) by June 2017.

The RCOA program is a requirement of the Electric Power Industry Reform Act of 2001 (EPIRA) that must be implemented to further promote competition in the electricity sector and give customers the power to choose. EPIRA also mandates that the threshold level for contestable market shall be reduced to 750 kW. Further, in compliance with the EPIRA, ERC will evaluate the performance of the market on an annual basis and gradually reduce the threshold level until it reaches the household-demand level.