For years, medium-sized businesses and residential clusters were “captive” customers—mandated to accept whatever rates their local utility provided. That ends on June 26, 2026. The Energy Regulatory Commission (ERC) under Resolution No. 22, Series of 2025, approved the rollout of the lowered threshold for Retail Competition and Open Access (RCOA) and Retail Aggregation Program (RAP) to 100 kW average Monthly Peak Demand.
If your facility (or a group of facilities) hits this mark, you already have the “Power of Choice”: the right to negotiate directly with a Retail Electricity Supplier (RES).
Are You Eligible?
Eligibility is based on your Average Monthly Peak Demand, not your total consumption (kWh).
- Individual Sites: If a single meter has an average monthly peak demand of 100 kW over the last 12 months, you are officially a “Contestable Customer” free to choose your power supplier.
- The Aggregation Rule: If your individual sites are small (e.g., three shops at 35 kW each), you can “pool” them. As long as the group is within the same distribution utility (like Meralco) and the total average demand is 100kW, you qualify for RAP.
The Formula
Average Monthly Peak Demand = Sum of Peak kW for the last 12 months / 12
Where to look: On a Meralco business bill, look for “Billed Demand (kW)” in the computation section. For residential groups, Meralco’s online Power Demand Estimator can help you calculate the peak draw of your equipment.
The Triple Benefit of Changing Your Power Supplier
Lower Rates
You can shop around. Suppliers offer competitive pricing models (Fixed, Indexed, or Hybrid) that are often significantly lower than standard utility generation charges.
Price Certainty
Utilities change prices every month based on global fuel costs. A RES can provide a fixed-rate contract for 1–2 years, protecting you from sudden price spikes.
Go Green
Through the Green Energy Option Program (GEOP), qualified 100 kW users can choose 100% renewable energy sources, often enjoying Zero-VAT on generation charges.
3 Steps to Energy Independence
- Step 1: The Audit. Gather 12 months of bills. If your average peak demand is near 100 kW, you are in the “Strike Zone.”
- Step 2: Submit an LOI. To switch by the June 26 activation date, you must submit a Letter of Intent (LOI) to your utility. If you miss the initial window, you can still switch later with a 90-day notice period.
- Step 3: Compare & Sign. Contact licensed Retail Electricity Suppliers. Don’t just look at the price including other charges, payment terms and contract duration; look at their value-added services like energy audits or smart monitoring.
References & Tools
- ERC Official Site: View Resolution No. 22, Series of 2025 for the legal framework.
- Meralco Power Demand Estimator: Use this tool to check your group’s eligibility.
- List of Licensed RES: Ensure your chosen supplier is DOE-certified.
Note: Starting July 2026, Meralco will include an “Eligibility Announcement” directly on your bill if you meet the 100 kW criteria. Keep an eye on your bill!
At Exist, we are committed to helping businesses navigate the intersection of technology, data analytics, and operational efficiency. While you evaluate your eligibility for RCOA Philippines, we’ll be sharing continuous tech, industry insights, and digital transformation solutions to help your business evolve.
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