In a world where electricity costs are steadily rising, knowing your options is more important than ever. Fortunately, government initiatives such as Retail Competition and Open Access (RCOA), Retail Aggregation Programs (RAP), and the Green Energy Option Program (GEOP) are opening the door to cheaper, more competitive power rates in the Philippines. These reforms are designed to give consumers the ability to choose their electricity suppliers and take control of their power bills.
RCOA: More Power to Choose
The Retail Competition and Open Access (RCOA) is a policy under the Electric Power Industry Reform Act (EPIRA) of 2001. It allows eligible power consumers to select their preferred electricity suppliers, instead of being locked into a single distribution utility. Initially available only to large consumers using at least 1 megawatt (MW) of power, RCOA expanded to include smaller users, down to 500 kilowatts (kW) in 2020.
Instead of passively accepting rates from the local electric company, qualified consumers can now shop around and negotiate with different Retail Electricity Suppliers (RES) for better deals—much like choosing a mobile phone or internet provider.
This setup introduces real competition into the market, giving customers the power to switch suppliers if they’re offered a more affordable or cleaner energy deal. In 2024, power consumers using the RCOA scheme saved ₱18.7 billion in electricity costs.
The Department of Energy (DOE) recently launched the commercial implementation of RCOA in the Mindanao region.
Electricity consumers with a monthly usage of at least 100 kilowatt-hours (kWh) could soon gain the ability to select their own electricity providers, as part of ongoing efforts to reduce the threshold for open access—potentially as early as 2027.
Key Benefit: More choices, more competitive pricing.
(Also read: Globe Telecom Expands RE Use with First Sites Powered in Mindanao)
RAP: Making Group Buying Possible
But what if your energy consumption is below the threshold to qualify for RCOA? That’s where the Retail Aggregation Program (RAP) comes in.
The Retail Aggregation Program (RAP) enables smaller electricity consumers to combine their energy demand and gain access to benefits previously available only to large-scale users. This marks a step toward greater inclusivity and choice in the energy market.
Through RAP, two or more end-users located within the same vicinity can consolidate their electricity consumption. Once their total monthly average peak demand reaches at least 500 kilowatts (kW), they can select their preferred electricity supplier, negotiate supply terms, and benefit from more competitive electricity rates. What was once limited to high-demand customers is now becoming accessible to mid-sized buildings, office clusters, and business tenants. By aggregating their demand, these smaller accounts effectively operate as a single, larger buyer with stronger bargaining power.
As of June 2025, retail energy transactions made up 24.37% of the overall electricity market—an increase from 22% in 2024. This growth indicates a rising number of businesses are embracing the aggregation approach and participating in the contestable market.
Key Benefit: Unlock access to cheaper power even if you’re a small consumer.
(Also read: No Power, No Progress: The Critical Role of Baseload Power in Mindanao’s Growth)
GEOP: Choose Clean Power
For those who not only want to save on power costs but also care about sustainability, the Green Energy Option Program (GEOP) offers a unique path.
GEOP enables end-users with an average monthly demand of at least 100 kW for the past 12 months to source electricity exclusively from renewable energy (RE) providers. This includes solar, wind, hydro, and biomass sources. Consumers can shift to GEOP by choosing from a list of DOE-licensed Renewable Energy Suppliers (RES) offering green power packages.
The Green Energy Option Program officially started commercial operations in Mindanao in 2024. This program supports both energy independence and climate goals—and with RE technology becoming cheaper and more efficient, GEOP is increasingly cost-competitive.
A study conducted by The Climate Reality Project Philippines found that 36 companies that switched to GEOP experienced an average 34% drop in electricity expenses, amounting to around ₱71.7 million in total savings. Since 2021, these businesses have also achieved a 79% reduction in carbon emissions, eliminating approximately 8.89 million kilograms of CO₂.
Key Benefit: Go green without breaking the bank.
(Also read: Integrating Renewable Energy: Challenges and Opportunities)
Energy Choice = Energy Savings
The government’s push for a more competitive, open electricity market is reshaping the energy landscape in the Philippines. Whether you’re a large business, a community group, or an informed homeowner, programs like RCOA, Retail Aggregation, and GEOP can help you lower your electricity costs, increase energy transparency, and even support clean energy goals.
Ultimately, whether you’re a large business or a group of smaller consumers working together, the power to choose means the power to save.
Sources:
https://www.philstar.com/business/2020/12/29/2066760/erc-lowers-threshold-open-access
https://bilyonaryo.com/2025/03/04/rcoa-saves-consumers-p18-57b-in-2024/brand-news/
https://www.philstar.com/business/2024/07/15/2370165/erc-eyes-lower-open-access-threshold-early-2027
https://businessmirror.com.ph/2024/03/14/commercial-ops-of-rcoa-geop-start-in-mindanao-march-26-doe/
https://climatereality.ph/resources/enabling-the-renaissance-of-renewable-energy-in-the-philippines/
