More consumers tapped the retail electricity market this year according to the Energy Regulatory Commission (ERC).
In a report, the ERC disclosed that the number of consumers who exercised their right to choose their power supplier increased due to lower average rates on the competitive retail electricity market (CREM) .
The ERC Market Operations Service-Retail Market Division (MOS-RMD) report showed that the weighted average price on the retail market was P5.49 per kWh in the first quarter of 2024. In comparison, the average generation charge of distribution utilities (DU) in Luzon was at P7.0665 per kilowatt-hour, Visayas was at P7.7093 per kilo-watt hour, and the national average was at P6.7460 per kilowatt-hour in the same period.
The CREM empowers consumers to select their power supplier. This drives rates down as suppliers compete for customers. In areas where the customers are a captive market of DUs, the rates tend to be higher.
In another report, the Philippine Electricity Market Corporation (PEMC) stated that the rates in the CREM are 23 percent lower than the DU average rates giving CREM customers an estimated savings of P46 billion in 2023.
The PEMC is the body that governs the Wholesale Electricity Spot Market.
Currently, there are 1,999 CERM customers; up from 1,918 in 2022. Additionally, there are 330 customers on the Green Energy Option Program (GEOP). The GEOP program enables consumers to opt for purely renewable sources for their energy needs.
References:
More consumers tapped retail electricity suppliers this year – Manila Standard
