Manila Water enters contestable power market

EAST ZONE concessionaire Manila Water Co., Inc. has entered the contestable market, allowing it to select its own power supplier for 10 of its facilities under the expanded retail aggregation program (RAP), according to the Energy Regulatory Commission (ERC).

In a statement on Sunday, the ERC said Manila Water’s move marks the first pilot switch under the expanded RAP, which was implemented in August last year.

“It is exciting to see more consumers gaining access to the benefits of exercising their power of choice,” said ERC Chairperson and Chief Executive Officer (CEO) Monalisa C. Dimalanta. “This inspires us at the ERC to work even harder toward promoting this power and protecting consumer interests.”

Last year, the ERC issued a resolution enhancing the implementation of the RAP.

The expanded RAP allows loads from multiple end-users consuming below the 500-kilowatt threshold, located within the same franchise area and under specified conditions, to be aggregated to contract with their preferred supplier at a negotiated purchase price.

As the first-ever switched customer under the expanded RAP, Manila Water aggregated the demand from 10 facilities, primarily sewage treatment plants located within the Manila Electric Co. (Meralco) franchise area, to meet the threshold.

“Manila Water is proud to be trailblazing with the government to improve the lives of its customers. By working with the ERC to introduce innovative amendments to the retail aggregation program, we have expanded customer choice and lowered power rates through negotiated tariffs,” said Manila Water President and CEO Jose Victor Emmanuel “Jocot” A. de Dios.

“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 — but also pave the way for a more sustainable and competitive energy market that benefits the country,” he added.

Citing its records, the ERC said that retail market prices in 2024 averaged P5.77 per kilowatt-hour (kWh), with the lowest price recorded at P3.50 per kWh.

“With this pilot switch, more groups are expected to transition to the contestable market under the RAP in the coming weeks, further advancing retail competition in the energy sector,” the commission said. — Sheldeen Joy Talavera