Electricity powers everything, yet most of us do not appreciate where it comes from or how it gets to us. We simply flip a switch and always expect it to be there - we lose it and our world is turned upside down.

More than that, the freedom to choose how and from whom we source our electricity is more than a technicality. It is a right that carries weight — one that can unlock savings, potential growth, and self-determination for businesses.

Choosing an electricity supplier has seen increasing convenience over the past few years. Through the Energy Regulatory Commission’s (ERC) Customer Choice Programs, eligible end-users can break away from being tied to a single utility provider. Instead, they can select from a range of licensed RES options that best match their needs.

One such program is the Retail Competition and Open Access (RCOA) — a key reform introduced through the Electric Power Industry Reform Act (EPIRA) of 2001.

Under RCOA, facilities that consume an average peak demand of 500 kW or more for the preceding 12 months gain the freedom to choose their own Retail Electricity Supplier (RES), a licensed provider that can offer more competitive rates and customized energy solutions compared to their local distribution utility.

According to the ERC’s February 2025 narrative report on the Competitive Retail Electricity Market (CREM), 59 percent of the 3,662 eligible end-users in the country, representing over 6,400 MW of demand, have already made the switch to a RES.

In doing so, these end-users collectively saved approximately ₱18.75 billion in 2024 alone – savings that were converted to investments that made their business operations more efficient, improved employee welfare conditions, mounted innovative operational projects, and aided overall growth of businesses.

These figures show that the market is responding, but they also reveal that there is still much work to be done as around 40 percent of eligible businesses have yet to explore the potential benefits of switching.

When businesses choose their electricity supplier, they are not just chasing lower rates, they are claiming control over a critical part of their operations. It means having options, not obligations.

Over the past decade, multiple RES providers have empowered businesses by offering real choice in who supplies their power. More than that, RES also offers tailored energy supply contracts that can lead to cost savings, improved service, and smarter energy management.

The healthy competition among retailers has enabled companies to lower energy costs, access flexible pricing structures, and explore more sustainable energy options.

However, the promise of RCOA remains far from fully realized. It requires both education and trust – critical factors that not all businesses currently have when it comes to navigating this transition.

I believe that the benefits of customer choice go far beyond the bottom line. These businesses I’ve been referring to are more than just electricity consumers: they run facilities where machines whir tirelessly to produce essential raw materials and export; where the hiss of our favorite beverages are sealed tight to safely arrive to us; where lights click on in offices that keep our work moving; and more importantly – create countless livelihood opportunities for Filipinos, among others.

This power of choice holds more significance in the regions. With RCOA having recently been implemented in Mindanao in 2024, we are beginning to see a ripple effect that trickles down to the local economy, strengthening livelihoods, and enhancing competitiveness in power sourcing and distribution to regional businesses.

Beyond competitive rates and energy supply, retail electricity suppliers should always strive to help customers take control of their energy through consumption analytics and demand-side management strategies. These adjustments should ultimately provide solutions that address both cost and conscience.

The power to choose goes beyond convenience. It is about enabling the engines of our economy to thrive. Hence, our role as retailers go beyond simply providing energy. It is our responsibility to help businesses navigate this complex energy landscape with confidence.

It is about creating ripple effects on livelihood, amplifying sustainability efforts, and hopefully, a broader social impact within the communities they serve.

Fulfilling this role brings us closer to energy democracy: a vision where electricity is not just available, but accessible, affordable, and aligned with the values of those who use it. A system where power truly serves the people.

Still, challenges remain. Beyond customer education, the inclusive energy future we envision can only be achieved through a whole-of-society approach where policymakers, suppliers, and end-users work together to build trust and ensure the long-term success of these programs.

Once the current proposal to lower the threshold becomes reality, the RCOA program will fulfill its full progression from catering to large-scale facilities to eligible customers who consume an average monthly peak demand of at least 100 kilowatts. With this vision of open access slowly being fully realized, even Filipino households will have the power to choose sooner than later. And when all consumers can choose, the entire nation becomes more powerful.

James Yu is the President of AdventEnergy, Aboitiz Power Corporation’s retail electricity supply arm. AdventEnergy delivers dependable energy supply, tailored energy solutions and services, promotes energy efficiency and conservation, and addresses complex power quality challenges faced by the country’s top industries and large-scale enterprises.