The Retail Aggregation Program in the Philippines is a government initiative that allows several electricity users to combine their power demand so they can qualify as a contestable customer, a status that lets them choose their preferred Retail Electricity Supplier (RES).
In simpler terms, small and medium-sized businesses that don’t consume enough electricity on their own can team up with other organizations to buy power together. This collective buying power means lower rates, better energy control, and more predictable costs.
The Energy Regulatory Commission (ERC) oversees the Retail Aggregation Program. It sets participation rules, approves applications, and ensures that aggregation is done fairly and transparently, protecting consumers and keeping the energy market competitive.
The Energy Efficiency and Conservation Act (Republic Act No. 11285) supports the Retail Aggregation Program by promoting smarter energy management. It encourages businesses to track and optimize electricity usage, helping them cut costs and reduce waste.
The Electric Power Industry Reform Act (EPIRA Law) introduced retail competition in the Philippines, allowing qualified users to choose their electricity supplier. The Retail Aggregation Program builds on this idea, making open access available to more businesses by letting them combine demand to meet the minimum consumption threshold.
Electricity is one of the biggest expenses for businesses. Through retail aggregation, companies can negotiate better prices and access bulk rates, similar to how large corporations save through high-volume purchasing.
Aggregation gives businesses the freedom to pick the electricity supplier that best fits their needs, whether that’s about price stability, service reliability, or sustainability goals.
With access to clearer data and flexible contracts, businesses can track, plan, and manage energy use more effectively, reducing waste and boosting operational efficiency.
Electricity prices in the Philippines typically will always vary, depending on your location and provider. Commercial and industrial users usually enjoy lower rates than residential customers due to their higher, more consistent usage.
Several factors influence electricity costs:
By pooling their energy needs, businesses gain buying power, which helps them negotiate better prices and avoid market volatility.
The Retail Aggregation Program (RAP) allows businesses located within the same distribution utility (DU) franchise area — such as those in business parks, industrial zones, or commercial districts — to combine their total energy demand and reach the Energy Regulatory Commission’s (ERC) minimum threshold for contestability.
Once approved, these businesses can collectively purchase electricity at competitive rates through a licensed Retail Electricity Supplier (RES). By aggregating demand, participants gain access to bulk pricing advantages, greater contract flexibility, and improved budget predictability, benefits that were previously limited to large power users.
To participate in the Retail Aggregation Program, groups must:
The program is open to a wide range of businesses and organizations. Examples include:
In short, the RAP enables smaller enterprises to enjoy the same competitive advantages once reserved for larger energy consumers, offering a smarter, more inclusive path to flexible, cost-efficient power sourcing.
The RCOA framework ensures that qualified customers can choose their power supplier rather than being locked into a single utility.
Retail Electricity Supply (RES) lets eligible businesses choose their electricity supplier, much like selecting your internet provider. Under the EPIRA, this system opens the market to competition, giving businesses access to better rates and flexible plans.
The power still comes from the same generators used by Distribution Utilities (DUs), the difference is who you buy it from. This setup promotes choice, transparency, and control, while ensuring the same reliable electricity supply.
While the benefits are clear, there are a few things to plan for:
With proper guidance, these challenges are manageable, especially with a trusted energy partner like COREnergy by your side.
Many energy companies in the Philippines serve the open access market, offering customized supply contracts and competitive rates for aggregated customers. These suppliers are licensed by the ERC to ensure reliability and fair play.
At COREnergy, we help businesses navigate the Retail Aggregation Program and optimize their energy procurement strategy. Our approach is simple: make energy easy to understand, manage, and save on.
We focus on cost predictability, operational stability, and efficiency, helping you make confident, informed energy decisions without the heavy technical talk.
To help smaller power users combine demand so they can enjoy the same competitive electricity rates as large customers.
The Energy Regulatory Commission (ERC) manages the rules, approvals, and monitoring.
Lower costs, supplier flexibility, better cost control, and smarter energy management.
A combined peak demand of at least 100 kWh monthly within the same utility area.
Yes, most definitely. Businesses from different organizations can aggregate as long as they’re with the same distribution utility as their current supplier.
The Retail Aggregation Program Philippines gives organizations the power to take control of their electricity costs. By teaming up, businesses can access competitive pricing, stable contracts, and more efficient energy use.
At COREnergy, we believe smarter energy management shouldn’t be complicated. We make it simple, transparent, and beneficial, so your business can focus on what it does best while we handle the energy side of things.
Learn more about how COREnergy can help your business join the Retail Aggregation Program or contact us directly for tailored assistance.
