Households may soon choose their power supplier; will it mean lower bills?

MANILA — Filipino households could gain the right to choose their electricity supplier by 2031 under a proposed regulatory roadmap, a major shift that could reshape competition in a market where most consumers have little say over who supplies their power.

The Energy Regulatory Commission (ERC) proposes gradually lowering the eligibility threshold for Retail Competition and Open Access (RCOA) from the current 100 kilowatts to 50 kW in 2027, then to 30 kW in 2030, before removing the threshold entirely by 2031. The proposal remains a draft and is subject to industry consultation and regulatory approval. 

For households, the change could eventually mean more choice over where they buy electricity. But greater choice will not automatically translate into cheaper bills. The benefits will depend on whether suppliers offer competitive rates, consumers can compare contracts clearly, and the infrastructure is ready to support switching.

The ERC’s roadmap includes faster smart-meter deployment and a centralized system for metering data. Under the proposal, households with compliant smart meters registered in the system could choose a supplier or remain on regulated default supply by 2031. 

The regulator is also weighing the financial risks of opening the market further. It estimates that lowering the threshold to 50 kW could expose distribution utilities to as much as ₱56.01 billion a year in gross stranded-contract costs, rising to ₱77.06 billion under full retail competition in 2031. These are estimates of potential exposure before mitigation measures, not confirmed losses. The ERC has proposed safeguards intended to prevent the costs from automatically being passed on to customers who remain with their existing utility. 

Stakeholders have until October 30 to submit comments on the draft roadmap. Public consultations are scheduled for November 5 in Luzon and November 6 in the Visayas and Mindanao. 

For Solviva Energy, the debate over electricity choice is part of a broader question: how can households get more control over their energy costs without facing a prohibitive upfront investment?

CEO Coby Cobankiat tells ANC’s Startup with Ron Cruz, the company offers a rent-to-own rooftop solar model with no down payment and a five-year payment period. According to the interview, customers make their first payment only after they have experienced a full month of savings. That structure is designed to address one of the biggest barriers to residential solar adoption: the initial cost of installing a system.

Cobankiat has also highlighted a less technical barrier: trust. Households need confidence that a solar system will be designed for their actual electricity use, installed properly and supported over time. Solviva says it assesses a household’s consumption and load profile, including air-conditioning use, before recommending a system.

That matters because households do not all want the same outcome. Some want to maximize savings; others want to reduce their bill as much as possible. A system that is too small may not meet a household’s expectations, while a larger system can mean a higher upfront cost or longer financing commitment.

Solviva operates under 1882 Energy Ventures, AboitizPower’s startup and innovation arm. Cobankiat has described the startup structure as giving the company room to experiment and adapt its business model as it learns what residential customers need.

The company’s experience also reflects the gap between interest and adoption. Cobankiat said demand for solar shifted sharply after the energy crisis began around March 2026, leaving the industry struggling to keep up. He estimated that residential solar adoption remained below 2 percent. 

The broader policy shift and the rooftop solar market are related, but they are not the same solution. Choosing a retail electricity supplier would give eligible consumers another way to buy power; rooftop solar lets households generate some of their own electricity. Neither guarantees savings in every home. Actual results depend on consumption patterns, system costs, financing terms, installation quality and the electricity tariff.

For consumers, the test will be practical: whether competition creates real options, solar financing becomes accessible beyond a narrow pool of borrowers, and advertised savings hold up against the actual bill.