Electricity powers everything that keeps a business running, from the machines on the factory floor to the lights in every office. When it comes to the source of that electricity, many companies don’t realize they have a choice.
In the Philippines, the opening up of the retail electricity market is changing the way businesses buy and manage power. Legislation like RCOA provides you with the freedom to choose your electricity provider, compare offers, and find a plan that suits your operations and budget. Here’s a simple guide to understanding how it works and how your company can benefit from it.
Electricity used to be purchased solely from a distribution utility such as Meralco or a local electric cooperative. However, with energy reforms and the introduction of the Retail Competition and Open Access (RCOA) policy, companies now increasingly have the freedom to choose who their electricity comes from.
This is where the retail electricity market comes in. Simply put, it’s a system that allows qualified customers, mainly large commercial and industrial consumers, to buy electricity directly from a licensed Retail Electricity Supplier (RES) instead of their default distribution utilities.
These suppliers compete to offer better rates, tailored services, and flexible contracts, empowering businesses to manage their power consumption more efficiently and cost-effectively.
The retail electricity market was established to bring competition and choice into the energy industry. Before this, all energy users in an area were solely served by just one distribution utility (DU) or electric cooperative (EC). Prices were set by these local providers and, while still regulated, there was no real competition to lower prices.
Since DUs and ECs aren’t allowed to profit from power generation — but also don’t compete with one another — electricity prices remained high, and businesses had little transparency or control over their rates.
Under the Electric Power Industry Reform Act (EPIRA), the goal was to open the electricity market, promote more competitive pricing, and ensure a stable power supply nationwide. By allowing multiple energy companies to serve consumers, the market became more dynamic and customer-focused.
Today, many companies can choose a Retail Electricity Supplier (RES) in the Philippines based on price, service quality, contract flexibility, or sustainability options — something that was impossible under the previous setup.
To understand the retail electricity market, it helps to trace how electricity makes its journey, from being generated at power plants to powering businesses across the country. Each stage plays an important role in delivering reliable energy and ensuring that companies have the choice in who distributes their energy source.
Electricity starts at generation companies (GenCos). These are the power plants that produce their own electricity using various energy sources. Some rely on conventional fuels such as coal and natural gas, while others harness renewable energy from solar panels, wind turbines, hydropower, or biomass.
This diversity of sources ensures a balanced energy mix that can meet the country’s growing demand while gradually supporting sustainability goals.
Once electricity is generated, it travels through high-voltage transmission lines managed by the National Grid Corporation of the Philippines (NGCP). Think of this as the national highway of electricity; it carries large amounts of power efficiently across long distances, connecting power plants to cities, industrial zones, and other major load centers.
After transmission, the electricity reaches distribution companies (DUs) or electric cooperatives (COOPs). These entities act as local “delivery systems,” stepping down the high-voltage electricity into a usable form and distributing it to businesses, homes, and communities.
This network includes all the well-known distribution companies that you are used to paying your home energy bills to.
Here’s where the Retail Electricity Suppliers (RES) come in. Under the Retail Competition and Open Access (RCOA) framework, qualified companies, known as contestable customers, can choose the purchase their electricity directly from a licensed supplier.
This allows businesses to negotiate contract terms, select pricing structures, and even choose energy sources that match their operational needs.
By working this way, companies gain greater control and visibility over their energy supply, with more say in how their energy plans are structured and the sources that power their operations.
In essence, the retail electricity market transforms electricity from an uncontrollable cost into a strategic business decision, helping companies balance cost-effectiveness, pricing predictability, service quality, and energy source.
The retail electricity market in the Philippines involves several major participants working together:
For eligible companies, switching to a retail electricity supplier in the Philippines opens up a range of benefits:
RES providers compete with one another for customers by negotiating directly with generation companies (GenCos) at the source. This often results in more favorable rates compared to distribution utility pricing. Businesses can also negotiate contract types that match their consumption patterns and operational preferences.
Unlike one-size-fits-all rates from a distribution utility, RES contracts can often be tailored to a company’s needs, from flexible payment structures to long-term fixed pricing or even mixed tariff contract types.
RES providers compete not just on price, but on service quality and customer support. With more responsive account management, clearer billing, and value-adding services, businesses spend less time worrying about energy administration and more time focusing on their core operations.
Some energy suppliers offer smart energy solutions that let businesses analyze their consumption in greater detail. With better visibility and data-driven insights, companies can reduce waste, optimize equipment performance, and manage energy expenses more strategically.
Different industries have different energy needs, and that’s where the retail electricity market truly shines. Opening the door to competition and flexibility, it allows every kind of business to take control of how they power their operations.
Manufacturers often operate heavy machinery, production lines, and cooling systems that run for long hours. Energy efficiency and cost control directly affect their bottom line.
Through the retail electricity market, manufacturing companies can negotiate supply contracts and access competitive rates tailored to their demand patterns. The result? Lower costs, improved operational stability, and stronger competitiveness.
For commercial spaces like malls, office towers, or hotels, a consistent electricity supply is crucial to maintaining daily operations and customer comfort.
The retail electricity market gives these establishments the freedom to lock in predictable energy costs, ensuring stable overheads even when market prices fluctuate.
In addition, having a dedicated retail electricity supplier means better service transparency, proactive monitoring, and quick support, helping businesses focus on their tenants instead of energy.
Emerging businesses and expanding brands are always looking for ways to fuel their next stage of growth. Partnering with a retail electricity supplier in the Philippines lets them reduce energy costs and redirect savings into expansion, whether that means opening new sites, upgrading equipment, or strengthening operations.
With flexible plans and transparent pricing, businesses can scale confidently while keeping their power costs under control.
Through RCOA and the retail electricity market, every type of company gains the power to choose, and that choice can redefine how they do business. It’s not just about who their electricity comes from; it’s about unlocking smarter, more tailored, and more data-driven ways to fuel success.
If your business is exploring the idea of switching to a retail electricity supplier in the Philippines, it’s worth understanding how the process works and who can qualify.
To help you get started, here are some of the most common questions businesses ask about the retail electricity market and how it can benefit them.
A Retail Electricity Supplier (RES) is a licensed entity that sells electricity to qualified customers. Since they compete for customers, a RES typically offers competitive rates, different contract types, and customized energy services.
Currently, only contestable customers — businesses with an average monthly demand of 500 kW or higher — can choose their own electricity supplier under the RCOA framework.
However, smaller businesses can still qualify early by joining together under the Retail Aggregation Program (RAP), which allows multiple establishments within the same distribution area to combine their demand and switch as a group.
The Energy Regulatory Commission (ERC) maintains an updated list of retail electricity suppliers accredited to operate in the country. COREnergy is one of the established providers serving businesses nationwide.
A distribution utility (DU) — like Meralco, VECO, or Davao Light — is responsible for delivering electricity through its poles, wires, and substations to homes and businesses within its franchise area.
A retail electricity supplier (RES), on the other hand, is the company you buy your actual electricity from under the Retail Competition and Open Access (RCOA) program. The RES sources power directly from generation companies (GenCos) and sells it to contestable customers through customized contracts.
Yes, some RES now offer energy plans that are either fully or partially based on renewable energy supply — solar, wind, hydro, geothermal — that allow businesses to consume sustainable electricity if their consumption profiles match up favorably to the available supply.
Not at all. Once eligibility is confirmed, the chosen retail electricity supplier coordinates with your business, your distribution utility, and regulatory bodies to ensure a smooth transition.
The Retail Competition and Open Access (RCOA) framework is what makes the retail electricity market possible. It ensures that businesses consuming a certain level of power, typically 500 kilowatts (kW) and above, can freely choose their electricity supplier.
This is where RES companies like COREnergy play a key role. As one of the trusted energy companies and retail electricity suppliers in the Philippines, COREnergy provides cost-competitive energy plans, flexible contract terms, and varied energy services that are designed for the competitive market.
COREnergy combines a diverse energy portfolio with customer-centric service, helping its customers achieve greater business profitability, greater operational productivity, and greater energy performance.
The retail electricity market in the Philippines gives businesses the freedom to take charge of their power supply, who they buy from, and what kind of energy they use.
For companies ready to take that step, working with a trusted retail electricity supplier like COREnergy ensures a seamless, transparent, and efficient transition toward smarter energy management.
Explore how your business can benefit from RCOA and retail electricity choice with COREnergy, your partner in powering progress through cost-effective energy solutions.
