Consumers save more than P4 billion via retail power

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April 6, 2026 | 12:00am

MANILA, Philippines — Sourcing electricity from the retail market remained more cost-efficient than relying on distribution utilities (DUs), with projected savings exceeding P4 billion in 2025.

Consumers who purchased power directly from their preferred suppliers saved around P4.23 billion last year, according to the Philippine Electricity Market Corp.

Latest PEMC data showed that power rates in the competitive retail electricity market (CREM) stayed within P5.30 to P5.70 per kilowatt-hour, lower than the P5.55 to P5.95 per kWh charged by DUs.

CREM prices remained stable and exhibited lower volatility compared to power generation rates from DUs, PEMC said in its annual retail market assessment report for 2025.

Of the total estimated savings last year, industrial customers accounted for about 62 percent due to higher consumption volumes, with the balance coming from commercial customers.

The 2025 savings, however, were significantly lower than the P16.76 billion recorded in 2024.

The estimated savings represent the difference between the weighted average retail rates and the top five DU generation rates based on CREM consumption for the period.

Unlike captive power end-users served by DUs, contestable customers in the retail market can select their preferred electricity suppliers.

“During the year, CREM participation continued to expand, with eligible end-users reaching 3,737 and registered CREM end-users increasing to 2,530, reflecting sustained growth across all consumption thresholds,” PEMC said.

Notably, Luzon remained home to the majority of CREM end-users, while Mindanao began to gain momentum in the market.

On the supply side, the Meralco and Aboitiz groups continued to dominate the market, although their relative shares declined as more suppliers gained customers.

“Consumption-based shares similarly reflected shifting dynamics, as the Meralco Group’s share fell from about 38 percent in 2021 to 27-28 percent in 2024-2025, while the Aboitiz Group peaked in 2023 before tapering off in 2025,” PEMC noted.

More consumers are expected to enter the retail market once the eligibility threshold is lowered later this year.

Starting June 26, the minimum threshold to participate in the retail competition and open access program will be reduced to 100 kilowatts from the current 500 kW.