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ERC Prescribes RCOA Threshold for Mindanao

By: Catherine Cueto

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The Energy Regulatory Commission (ERC) approved the eligibility thresholds for participation in the retail market in Mindanao, under ERC Resolution No. 6, Series of 2024.

Consistent with the prevailing threshold being implemented for Retail Competition and Open Access (RCOA) in Luzon and Visayas, Mindanao consumers with an average monthly peak demand of at least 500kW for the twelve (12) months preceding 26 March 2024 will be allowed to contract with any licensed/authorized

supplier of electricity on a voluntary basis.

As of the date ERC Resolution No. 6, series of 2024, was passed, approximately

239 end-users in Mindanao can potentially qualify to participate in RCOA with this

threshold. In contrast, only 102 end-users in Mindanao would qualify if the threshold were set at 1MW or higher.

The RCOA framework has evolved since its inception in 2013. This progress in

the market, coupled with the forthcoming release of the ERC’s Omnibus Rules for

Customer Choice Programs in the Retail Electricity Sector, is anticipated to address

various implementation challenges and to ensure a seamless implementation of the

consumer’s power of choice in the power sector in Mindanao.

“The Commission views the commencement of RCOA in Mindanao with immense

optimism,” according to ERC Chairperson CEO Monalisa Dimalanta. 

“We will continue to support and ensure that customers in Luzon, Visayas and Mindanao will be able to exercise meaningfully their power to choose suppliers as a way to realize reasonable price of electricity. Over the next few months, the ERC will conduct an aggressive information campaign to capacitate our contestable customers with the ability to effectively transact in the retail market and properly discern the best terms of power supply suited to their needs.”