Everything You Need to Know About Open Access in the Philippines

What is open access?

Open access is the Philippines' framework for giving businesses the right to choose their own electricity supplier. Established under the Electric Power Industry Reform Act (EPIRA) of 2001 and implemented through Retail Competition and Open Access (RCOA), the program breaks the traditional monopoly that distribution utilities hold over the supply component of electricity. Under open access, qualifying businesses can negotiate their supply rate, access granular consumption data, and receive itemized billing — capabilities that were never available under a distribution utility's bundled rate.

The legal framework: EPIRA and RCOA

EPIRA restructured the Philippine electricity industry by separating generation, transmission, distribution, and supply into distinct functions. RCOA is the specific program that enables retail competition — allowing end-users to buy electricity from licensed Retail Electricity Suppliers (RES) rather than being captive to their distribution utility's bundled rate. The Energy Regulatory Commission (ERC) regulates the program, licenses RES providers, and sets the demand threshold that determines eligibility.

Who qualifies: the current and expanded thresholds

The RCOA demand threshold has been gradually lowering over the years. Starting June 26, 2026, the threshold drops from 500kW to 100kW — the most significant expansion in the program's history. This single change makes approximately 12,000 additional Philippine businesses eligible for open access. Qualifying businesses include mid-sized manufacturers, food processing plants, commercial buildings, schools, hotels, hospitals, BPO operations, retail complexes, and cold storage facilities. If your average monthly peak demand is 100kW or above, you qualify.

The Retail Aggregation Program

For businesses that do not individually meet the 100kW threshold, the Retail Aggregation Program (RAP) offers an alternative path. Multiple business sites within the same distribution utility franchise area can combine their electricity demand to collectively qualify. This is designed for franchise networks, retail chains, property management companies, and business groups operating several smaller locations. A single RES manages the aggregated account, coordinating supply, billing, and data across all sites.

How switching works: the 90-day process

The switching process begins when you select a Retail Electricity Supplier and submit a Letter of Intent (LOI) to your distribution utility. From LOI acceptance, the formal transition takes approximately 90 days. During this period, your RES coordinates interval meter installation with the Retail Metering Service Provider (RMSP), completes regulatory registration with IEMOP (the Independent Electricity Market Operator of the Philippines), and manages all documentation and coordination with your distribution utility. Your power supply continues uninterrupted throughout.

What changes and what stays the same

When you switch to an RES, the supply component of your electricity changes — who provides the electricity, how the rate is determined, and how you are billed. Everything else stays the same. Your distribution utility continues to deliver electricity through the same physical infrastructure — the poles, lines, transformers, and substations. Your DU continues to handle network maintenance, emergency response, and the physical delivery of power. The change is in billing, data, and the supply relationship — not in the physical connection.

Common misconceptions about open access

Several misconceptions prevent businesses from exploring open access. The most common: that switching causes power interruptions (it does not — the physical delivery is unchanged), that the process is too complicated (your RES manages it), that it is only for large corporations (the 100kW threshold includes mid-sized businesses), and that your distribution utility will reduce service quality (they are legally required to maintain the same network services). Understanding these misconceptions is often the first step toward making an informed decision.

What to expect after switching

After your go-live date, you receive itemized monthly billing showing every charge component — generation, transmission, system losses, distribution, and universal charges. You gain access to consumption data through your RES's reporting tools, showing demand patterns, usage trends, and billing history. You have a dedicated account manager who understands your business and can help you interpret data, flag anomalies, and plan for changes. The ongoing relationship with your RES is a partnership built on transparency and data, not just a supply contract.

How to get started

The first step is confirming your eligibility — check your average monthly peak demand on your distribution utility bill. If you are at or above 100kW (or can reach 100kW through aggregation), you qualify. From there, engage with a licensed Retail Electricity Supplier to discuss your options, review their service model, and understand the contract terms. The switching process takes 90 days from LOI submission. There is no deadline to start — RCOA is a permanent program — but every month on a bundled rate is a month without visibility into your electricity costs.