RCOA 100kW: What Philippine Businesses Need to Know About Choosing Their Electricity Supplier

What is RCOA?

The Retail Competition and Open Access (RCOA) program is the Philippines' framework for electricity market liberalization. Mandated by the Electric Power Industry Reform Act (EPIRA) and administered by the Energy Regulatory Commission (ERC), RCOA gives qualifying businesses the right to choose their own electricity supplier — breaking the monopoly that distribution utilities have traditionally held over the supply component of your bill.

The 100kW expansion: what changed

Starting June 26, 2026, the RCOA demand threshold drops from 500kW to 100kW. This single regulatory change makes approximately 12,000 additional Philippine businesses eligible to choose their electricity supplier for the first time. The expansion covers mid-sized manufacturers, schools, commercial malls, cold storage facilities, BPO operations, hotels, and hospitals — businesses that have been paying distribution utility rates without any alternative until now.

Who qualifies

Any business with an average monthly peak demand of 100 kilowatts or more qualifies under the expanded threshold. This includes manufacturing plants, food processing facilities, commercial buildings, educational institutions, hotels and resorts, hospital complexes, data centers, and business process outsourcing operations. If you are unsure about your demand level, check the kW reading on your distribution utility bill or ask your RES to assess your eligibility.

What is the Retail Aggregation Program?

For businesses that don't 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 reach 100kW. This is particularly valuable for franchise owners with several branches, retail chains, and property managers overseeing multiple facilities.

What to expect from the switching process

The switching process begins with a Letter of Intent (LOI) submitted to your distribution utility, signaling your decision to move to open access. From there, your chosen Retail Electricity Supplier handles the regulatory coordination, metering arrangements, and transition logistics. The entire process typically takes 90 days from LOI submission, and your power supply is never interrupted during the transition.

Why this matters for your business

Under your distribution utility, you receive a single-line bill with no breakdown of supply costs, transmission charges, or system losses. You have no visibility into what drives your electricity costs and no ability to plan or negotiate. With a Retail Electricity Supplier, you get itemized billing, consumption data, demand analysis, and the ability to choose a supply arrangement that matches how your business actually uses power. The difference is not just price — it is transparency, data, and control.