Retail competition · Philippines
What is Retail Electricity Supply (RES)?
Retail Competition and Open Access (RCOA) lets qualifying customers choose who supplies their electricity, instead of buying only from their distribution utility. A licensed Retail Electricity Supplier (RES) competes for that business. SolarMD is not an RES; we help you switch to a licensed supplier when it fits your site.
Watch
RCOA explained in plain language
Dr. Andrie Udal walks through how the power system worked before RCOA, what changed for contestable customers, and the role of retail electricity suppliers.
Threshold note. The video shows earlier contestable thresholds (around 750 kW to 1 MW). Under ERC Resolution No. 22, Series of 2025, the RCOA threshold was lowered to 100 kW, effective 26 June 2026. The Green Energy Option Program (GEOP) remains available from 50 kW. Always confirm current ERC rules for your site.
Before vs after RCOA
How the system changes
Before RCOA
Generators, transmission and distribution utilities (DUs) sit in a vertically integrated chain. Most end users buy bundled power from their DU. The DU steps down, delivers, meters, bills and settles electricity. DOE sets policy; ERC regulates; WESM handles wholesale scheduling and settlement.
After RCOA
Contestable customers can choose a licensed RES (or stay with the DU as local supplier, deal with generators, or buy through WESM where allowed). The DU focuses on the wires: distribution network and metering for contestable markets. Suppliers compete on price, contracts and service.
Who is who
Contestable vs captive customers
Contestable
Customers who meet the demand threshold can choose their electricity supplier. They gain competition on price and contract terms. The long-term policy goal of RCOA is to widen this group over time.
Captive
Customers below the threshold stay with their DU under the same bundled service as before, until rules allow them to become contestable.
The supplier
What a Retail Electricity Supplier does
A RES is a company licensed and accredited by the ERC. It acts as a broker between generators, WESM, the DU and the contestable customer. Suppliers compete for your load with pricing, bundled contracts and service offers. SolarMD is not a RES and does not supply or fund RES power. When retail supply fits your site, we help you assess options and switch to a licensed supplier.
- Licensed after ERC review
- Competes for contestable customers
- Contracts directly with you for energy supply
- Works alongside the DU, which still runs the distribution wires and metering
Other roles
DU, SOLR and PEMC
Distribution utility (DU)
Manages the distribution network and metering for contestable markets. Can form its own supplier arm to compete, while still serving captive customers. May also act as local supplier if you choose to stay.
Supplier of last resort (SOLR)
A backup supplier assigned so you still have power if your chosen RES has problems. A safety net, not your everyday choice.
PEMC
As market operator of WESM, PEMC also acts as the central registration body for retail market transactions and information exchange under RCOA.
Current rules
Who qualifies now
Average peak demand threshold under ERC Resolution No. 22, Series of 2025, effective 26 June 2026. Confirm your interval demand and DU registration steps for your franchise area.
The Green Energy Option Program lets eligible end users source from renewable energy suppliers from 50 kW. Separate from RCOA, and useful for sites that want renewable supply below the contestable threshold.
Eligibility depends on your measured demand, franchise area and current ERC and DOE rules. SolarMD can help you interpret your bills and next steps; we do not register you as a RES customer ourselves.
With rooftop solar
Rooftop, RES, or both
A SolarMD solar PPA can cover what your roof produces at ₱0 upfront. The remaining load can be supplied by a licensed RES. SolarMD helps you assess and coordinate that switch. SolarMD is not an RES and does not supply that power.
Illustrative only, not a quote. Retail supply is contracted directly with a licensed RES. Savings are not guaranteed.
GEOP · 50 kW
Green Energy Option Program
If you are below the RCOA contestable threshold but want renewable supply, GEOP starts at 50 kW. It is a separate DOE/ERC pathway from RCOA. Ask us when you share your bills; we can help you see whether GEOP, RCOA, a solar PPA, or a combination is worth exploring.
- From 50 kW average peak demand
- Contracts with a renewable energy supplier
- Can sit alongside on-site solar where the site allows
Check if retail supply fits your site
Upload 12 months of electricity bills on our short qualification page. We look at demand, daytime load and whether a Zero Capex solar PPA, a licensed RES switch, GEOP, or a combination may suit you.