What is customer choice in electricity?

The Retail Competition and Open Access (RCOA) of the Energy Regulatory Commission (ERC) policy gives energy-intensive consumers the right to choose their own power supplier, instead of being tied only to their local distribution utility (DU).

It's part of the Philippines' effort to create a more competitive and efficient electricity market. By opening up the retail power sector, RCOA allows big commercial and industrial (C&I) consumers to negotiate directly with Retail Electricity Suppliers (RES) for the best price and contract terms.

How does it work?

At its core, RCOA changes the way electricity flows from power plants to end-users by introducing choice at the retail level. Instead of simply accepting supply from the local DU, qualified "contestable customers" can now bypass the default system and pick a supplier that competes for their business.

RCOA is for large, individual electricity consumers

Factories, malls, big buildings who already meet the demand threshold on their own.

RAP is for smaller consumers

Homes, branches, SMEs who need to combine their demand to reach the threshold. More about the Retail Aggregation Program here.

Why does it matter?

RCOA matters because it introduces competition and flexibility into our electricity market. By giving big electricity users the freedom to shop around, it not only reduces their costs but also drives improvements across the energy sector. Over time, this leads to broader efficiency and innovation that benefits both businesses and the economy.

Lower Energy Costs

Businesses with high electricity demand can unlock significant savings by sourcing directly from suppliers.

Market Competition

The presence of multiple suppliers drives more competitive pricing and service.

Flexibility & Customization

Big users can negotiate contract terms, payment structures, and even access renewable energy options.

For everyday consumers who don't meet the threshold, RAP is the natural extension—and with Powerhouse, you don't need to figure out the details yourself. We make group switching simple, transparent, and beneficial for everyone.