Switching to RES

How to Switch to a Retail Electricity Supplier (RES)

Learn how businesses can switch to a Retail Electricity Supplier for lower electricity costs in the Philippines, energy options, and energy efficiency with COREnergy.

How to Switch to a Retail Electricity Supplier (RES)

Electricity costs in the Philippines are among the highest in Southeast Asia, and for many businesses, it’s more than just a monthly bill; it’s a strategic concern. With operating costs rising, companies are looking for smarter, more cost-efficient energy solutions.

Enter the Retail Electricity Supplier (RES), a game-changer for businesses ready to take control of their energy future. Through the government’s Retail Competition and Open Access (RCOA) policy, eligible companies now have the power to choose which supplier to source from and what kind of energy plan works best for them. Switching to a RES opens new possibilities for efficiency and savings.

What Is a Retail Electricity Supplier (RES)?

A Retail Electricity Supplier, or RES, is a licensed company that sells electricity directly to end users, typically large or contestable businesses. 

Unlike traditional utilities, where you’re automatically tied to a local distribution company, RES gives you the freedom to select your electricity provider based on your business needs, budget, and business goals.

This is part of the Retail Competition and Open Access (RCOA) framework introduced by the Department of Energy (DOE) and the Energy Regulatory Commission (ERC). RCOA promotes competition in the energy market by allowing consumers to “shop around” for more competitive rates, higher quality services, or a better customer experience..

With RES options, your company can:

  • Negotiate competitive prices instead of paying unpredictable rates set by a single utility.
  • Choose an energy plan with a tariff structure that suits your business needs.
  • Gain greater visibility and insight into your energy consumption data.

The result? More flexibility, better pricing, better experience, and a pathway to having an energy solution fit for your business.

What’s In Your Energy Bill?

A Retail Electricity Supplier (RES) competes with others by sourcing power from different combinations of generation companies (GenCos). These supply mixes create cost efficiencies in the generation charge, which the RES can pass on to customers through more competitive pricing.

To make the most of your switch, it helps to understand how electricity cost in the Philippines is determined. Rates vary based on these main components:

  1. Generation Charge – The cost of producing electricity from power plants using different energy sources, from coal to wind.
  2. Transmission Charge – The cost of transporting electricity through the national grid managed by NGCP.
  3. Distribution Charge – The fee charged by your local distribution utility for delivering power to your facility.
  4. System Loss, Taxes, and Other Charges – These include government-mandated fees and losses during transmission and distribution.

Depending on their mix of supply, RES providers can offer different types of energy plans. Some deliver steady, predictable rates throughout the day, others provide greater savings during solar hours, and some follow real-time market prices for those willing to deal with spot market fluctuations. This flexibility lets businesses choose the plan that best fits their operations, budget, and risk appetite.

Why Businesses Are Making the Switch

Switching to a RES isn’t just about saving money; it’s about transforming how businesses consume energy.

  1. Cost Efficiency – With multiple suppliers competing for your business, you can secure lower rates and more flexible payment terms. Some RES providers even offer time-of-use pricing, helping you save if your consumption is high and market rates are low..
  2. Predictable and Transparent Billing – You get detailed reporting and consistent billing structures, making budgeting easier and reducing surprises in your monthly energy expenses.
  3. Sustainability and Innovation – Many suppliers now integrate renewable energy sources into their blended portfolios, helping you save during solar hours whilst keeping your overall energy plan's pricing manageable.
  4. Improved Energy Consumption – Businesses gain access to advanced consumption data and insights, making it easier to track and optimize their energy use and energy efficiency in the Philippines.

How to Switch to a Retail Electricity Supplier

Switching to a Retail Electricity Supplier (RES) may sound complicated, but it’s actually a straightforward process once you understand the steps. By moving from a Distribution Utility (DU) to a licensed RES, your business gains greater control, flexibility, and visibility over your electricity costs.

If you’re considering making the switch, here’s a clear, step-by-step guide to help you get started.

Check Your Eligibility

Not all businesses can join the retail electricity market right away. Under the Department of Energy’s (DOE) guidelines, only contestable customers — those with an average monthly electricity demand of at least 500 kW — are currently eligible to choose their electricity supplier. This typically includes factories, hotels, office complexes, and large commercial buildings.

If your business consumes less than 500 kW, there’s still an option: the Retail Aggregation Program (RAP). This allows multiple businesses within the same distribution area to combine their demand and qualify together, giving smaller enterprises a head start in accessing competitive electricity rates.

Compare and Evaluate Suppliers

Once you’re eligible, start researching licensed Retail Electricity Suppliers in the Philippines. Each supplier offers different plans and benefits, so it’s worth taking the time to compare. Look into:

  • Energy plans: Fixed, variable (market-based), or blended pricing
  • Contract flexibility: Term lengths, renewal options, and review inclusions and exclusions
  • Engineering or energy services: Such as energy audits, thermal scans, or power quality management
  • Customer experience: How they support customers during switching and ongoing billing

If you’re exploring options, consider suppliers known for transparent pricing and proactive guidance, those who don’t just sell electricity, but also help you make sense of your options and find the plan that truly fits your business operations.

Share Your Consumption Data

Before a RES can make an offer, the RES will need to understand your energy usage patterns. This step usually involves sharing:

  • Your average demand (how much energy your business consumes)
  • Your consumption profile (how and when you use electricity throughout the day or week)
  • Recent electricity bills or load data from your current Distribution Utility

This information helps the supplier build a customized offer that aligns with your energy habits and cost goals.

A customer-focused supplier will explain how pricing is calculated, what’s included in your rate, and whether line rental or other delivery charges are part of the total cost. Look for providers that value clarity and transparency, ensuring you get no hidden fees and no confusing fine print.

Review, Negotiate, and Sign Your Contract

Once you’ve received your offer, take the time to review and clarify all contract details before signing. Key points to check include:

  • Rate structure, if it is fixed, variable, or a mix of both
  • Contract duration, such as how long the agreement runs, and if it can be renewed easily
  • Payment terms and security deposit requirements
  • Line rental or delivery cost inclusions

Some RES providers, for example, offer flexible security deposit arrangements or coordinate directly with partner banks for easier processing.

A reliable supplier will walk you through these terms carefully, ensuring your contract is fair, transparent, and aligned with your business priorities.

Coordinate the Switching Process

Once your contract is finalized, your RES will help coordinate with several key organizations involved in the transition:

  • You, the customer (for documentation and validation)
  • Your Distribution Utility (DU)
  • The National Grid Corporation of the Philippines (NGCP)
  • The Energy Regulatory Commission (ERC)
  • The Independent Electricity Market Operator of the Philippines (IEMOP)

The process typically includes technical validation, metering setup, and registration. While it may sound like a lot of moving parts, a good supplier will guide you every step of the way, ensuring all documents are properly handled and keeping you updated throughout.

If you’re thinking of switching, look for a supplier that provides hands-on coordination and customer-first service, one that assists with filling out forms, requirements, and validation so you can stay focused on running your business.

Start Your New Supply

Once everything is approved, your business begins sourcing power from your new Retail Electricity Supplier. From then on, you’ll receive electricity bills directly from your RES, typically with clearer consumption breakdowns, better cost visibility, and easier access to account support.

Some suppliers even assist with onboarding and early usage monitoring, helping you understand your first bills and track your savings during the first few months of your new supply, making the transition as smooth as possible.

The Bottom Line

Switching to a Retail Electricity Supplier allows your business to take control of your power costs and enjoy a more transparent, flexible energy experience.

If you’re considering the switch, look for a RES that prioritizes guidance, clarity, and customer support, a partner that helps make the process simple from start to finish, and ensures your energy plan truly works for your business.

Suppliers like COREnergy take this a step further by offering end-to-end assistance — from evaluation to onboarding — so businesses can transition smoothly and start saving sooner. With a customer-first approach and clear, transparent pricing, COREnergy helps you power your growth with confidence.

FAQs About Switching to a RES

Switching to a Retail Electricity Supplier (RES) is a big step toward smarter energy management. But it can also raise a few questions, especially for businesses exploring it for the first time. To simplify things, here are some of the most frequently asked questions about electricity providers and how the retail electricity market in the Philippines operates.

What is the cost of electricity per kWh in the Philippines?

Electricity prices change frequently due to factors like fuel costs, weather, grid congestion, and power plant availability. Because of these fluctuations, many businesses turn to Retail Electricity Suppliers (RES) like COREnergy for more competitive and flexible pricing options.

What is a Retail Electricity Supplier and how does it work?

A Retail Electricity Supplier (RES) is a licensed company that sells electricity directly to qualified customers. Under the Retail Competition and Open Access (RCOA) policy, eligible businesses can choose their own electricity provider instead of being tied to a single distribution utility. This allows them to access more competitive rates, flexible contract terms, and higher service quality.

Who can switch to a Retail Electricity Supplier (RES) in the Philippines?

Currently, only contestable customers, those with an average monthly peak demand of at least 500 kW, are qualified to choose their own electricity provider under RCOA. This usually includes large offices, factories, malls, and industrial plants. However, the Department of Energy aims to expand access to smaller consumers in the future.

What are the benefits of switching to a Retail Electricity Supplier?

Switching to a RES gives businesses:

  • Competitive electricity rates and transparent billing
  • Flexible energy plans with a range of contract structures and terms
  • Better energy analytics and usage monitoring to aid consumption optimization

Ultimately, the biggest advantage is control. You decide how your business sources, manages, and pays for energy.

Choosing the Right Partner

Selecting the right RES or alternative energy provider is key to maximizing the benefits of deregulated power. Look for a partner that:

  • Has a strong record in the Philippine energy market.
  • Provides flexible, transparent pricing.
  • Offers technical and analytical support to optimize your consumption.

Reliable energy partners like COREnergy, a trusted Retail Electricity Supplier in the Philippines, deliver customized power solutions built around your operational needs. 

Whether you aim to stabilize costs or simply gain more control over your energy, the right partner ensures a seamless transition and long-term value.

Power Your Business Smarter

Switching to a Retail Electricity Supplier (RES) isn’t just about changing how you’re billed; it’s about taking control of your energy future. It gives businesses the freedom to choose, negotiate, and optimize energy use while paving the way for sustainable growth.

With COREnergy, businesses gain a trusted partner that delivers tailored energy solutions designed around your goals. From competitive pricing to bespoke energy services, COREnergy empowers companies by helping them improve their bottom line, achieve greater operational productivity, and make better, smarter energy decisions.

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