The Manila Water Co. Inc. was given the choice of picking its own energy supplier under the expanded Retail Aggregation Program, according to the Energy Regulatory Commission (ERC).
The commission said Manila Water has switched its first 10 facilities consuming 500 kilowatts (kW) from the captive market to the contestable market under the expanded program.
In a statement Sunday, ERC said the aggregation program allows multiple end-users that consume less than the 500kW threshold within the same franchise area and under certain conditions, to forge a contract with their preferred supplier at their agreed purchase price.
Manila Water aggregated the demand from 10 of its facilities, mainly sewage treatment plants in various locations within Manila Electric Co.’s (Meralco) franchise area, to meet the 500kW retail competition open access threshold, the commission added.
Last December, Manila Water also signed a separate power purchase agreement with Meralco subsidiary MSpectrum. MSpectrum is expected to install the second phase of a solar power farm to cover 10 Manila Water facilities starting in the first quarter this year.
Open access enables qualified industrial electricity customers with a monthly peak demand of at least 500 kW over the previous 12 months to choose their own power suppliers and negotiate for power rates that are amenable to both the supplier and the customer.
Jocot de Dios, Manila Water president and chief executive officer, said in a statement the program allowed the water utility to lower its cost of power by negotiating the tariff rates for electricity.
“By leading this breakthrough, we not only secure cost efficient energy to run our water and wastewater treatment plants which will ultimately benefit our customers, we are also paving the way for a more sustainable and competitive energy market that benefits the country,” De Dios said.
Last December, Manila Water signed a separate power purchase agreement with Meralco subsidiary MSpectrum.
The project covers 4.271 megawatts of renewable energy that will generate up to 6.2 million kilowatt hours (kWh) per year, and reduce the water utility’s power consumption equivalent to 2,600 households consuming 200 kWh per month.
Adding more solar power to the water utility’s source of energy is also estimated to mitigate around 4,400 tons of carbon dioxide emissions per year.
Manila Water mainly serves customers in Makati, Pasig, Pateros, Marikina, Mandaluyong, San Juan, Taguig, some parts of Quezon City and Manila, and several towns in Rizal province that include Taytay, Teresa, Angono, Antipolo, Baras, Binangonan, Cainta, San Mateo and Rodriguez.
The energy retail price was P5.77 per kWh on average in 2024, with the lowest at P3.50 per kWh, according to ERC records.
With Manila Water’s switch to another energy supplier, ERC said more groups are expected to go for the contestable market under the retail aggregation program in the coming weeks, advancing retail competition in the energy sector.
“It is exciting to see more consumers gaining access to the benefits of exercising their power of choice … This inspires us at the ERC to work even harder towards promoting this power and protecting consumer interests,” said ERC Chair Monalisa Dimalanta.
