THE Energy Regulatory Commission (ERC) recorded a lower average price in the retail electricity market for the first quarter of 2024 compared to average rates for full year 2023 of captive customers served by distribution utilities (DUs).
Under the provisions of retail competition and open access (RCOA) programs such as the Competitive Retail Electricity Market (CREM), businesses are allowed to choose their own energy supplier if they have a monthly consumption of at least 500 kilowatt hours (kWh).
For the Green Energy Option Program (GEOP), customers can freely choose their own suppliers if they want their electricity to be purely from renewable sources.
ERC said based on the report prepared by its Market Operations Service-Retail Market Division on the Competitive Retail Electricity Market (CREM), supply prices of retail electricity suppliers (RES) in the first quarter ranged from P3.57 per kilowatt hour (kWh) to as high as P7.67 per kWh, with a weighted average price of P5.49 per kWh.
The regulatory body said the amount is significantly lower than the 2023 weighted average generation charges of DUs for captive customers in the main grids of Luzon at P7.0665 per kWh and in the Visayas at P7.7093 per kWh and the national average of P6.7460 per kWh.
The ERC said a report published by the Philippine Electricity Market Corp. showed that in 2023, CREM customers realized an estimated total savings of P46 billion because the rates in the CREM are 23 percent lower compared to the DU average rates.
The regulatory body also said as of March 2024, the number of registered CREM customers increased from 1,918 in 2022 to 1,999. There are now 330 GEOP customers.
“…We are optimistic the retail market will continue to grow as the commission addresses the issues on market concentration with continuous and more diligent monitoring to prevent and penalize anti-competitive behaviors,” said Monalisa Dimalanta, ERC chair, in a statement.
“With the implementation of more consumer choice programs nationwide, the commission has received several applications for RES licenses from non-affiliated entities. This is a clear sign of increasing competition in the retail market which should only lead to better choices for our consumers,” Dimalanta added.
