Energy Regulatory Commission (ERC) / STOCK
The Energy Regulatory Commission (ERC) reported on Thursday that the country’s retail electricity price dipped in the first quarter of 2024.
The agency said the decline in the first quarter was “caused by customers switching to other suppliers who are able to offer either lower prices or better value added services.”
In a statement, it said the supply prices of retail electricity suppliers (RES) in the January-March period ranged from P3.57 per kilowatthour (kWh) to P7.67/kWh, averaging P5.49/kWh. For the first quarter of 2023, the average price of retail electricity prices reached P6/kWh.
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The ERC said this was “significantly lower” than last year’s weighted average generation charges of distribution utilities (DUs) in the main grids, with a national average of P6.7460/kWh.
“The benefits of CREM (Competitive Retail Electricity Market) and Green Energy Option Program (GEOP)–both programs extending to consumers the right to choose their own suppliers–led to an additional 81 in the CREM and 131 in the GEOP,” it said.
Ending the first quarter, the total number of registered CREM customers increased from 1,918 in 2022 to 1,999 by March 2024. GEOP customers, meanwhile, jumped to 330.
It also noted that 60 percent of the total 3,329 end-users are being served under CREM, while the remaining have yet to choose their supplies and remain under DUs.
“We are optimistic that the retail market will continue to grow as the Commission addresses the issues on market concentration with continuous and more diligent monitoring to prevent and penalize anti-competitive behaviors,” said ERC Chairperson and CEO Monalisa Dimalanta.
“With the implementation of more consumer choice programs nationwide, the Commission has received several applications for RES licenses from non-affiliated entities. This is a clear sign of increasing competition in the retail market which should only lead to better choices for our consumers,” she added.
The Meralco Group continues to hold the position as the top RES in terms of customer base, while the Aboitiz Group has the highest market share considering the demand.