If there’s a “most punishing relationship” in town, it’s the one between consumers and their power utilities. It is a toxic romance where the bills keep climbing, but mercy never comes.

This month, many consumers served by utility giant Manila Electric Co. (Meralco) were stunned by a ₱13.17 per kWh bill. The ₱0.22 hike hit during a “low consumption” period, proving that electricity tariffs can increase even when logic says they should fall—driven by rising transmission costs and other supply charges.

Unfortunately, household consumers remain chained to regulated tariffs. Without an option under the Retail Competition and Open Access (RCOA) regime, “freedom of choice” remains a hollow promise, leaving residential ratepayers to bear the crushing weight of relentlessly rising costs.

This never-ending torment—a grim legacy of the current administration—cannot go on forever. It is high time for the Department of Energy (DOE) and the Energy Regulatory Commission (ERC) to cut the ropes of oppression and finally grant residential consumers their “power of choice,” snuffing out decades of merciless captivity by incumbent utilities.

In other electricity markets—including the European Union, the United States, and our neighbor Singapore—households effortlessly use digital tools to snag electricity deals tailored to their budgets. This web-enabled convenience remains a distant dream for millions of Filipinos.

In these overseas markets, retailers provide full technological leverage: online price comparisons for fixed or variable plans (six, 12, or 24 months), green energy procurement options, and fully digital enrollment with secure e-signatures. Switching suppliers is seamless—often taking only weeks—and occurs without the risk of service interruptions.

Data shows that household customers in competitive markets have seen their bills drop by 10–25 percent compared to regulated tariffs. It is a testament to what real competition delivers, and a bitter reminder of what captive Filipino consumers continue to miss.

It has been 25 years since the Philippines embraced deregulation via the Electric Power Industry Reform Act (EPIRA) of 2001. Yet, Filipino households remain powerless to exercise the choice promised to them over two decades ago.

If this were a prison sentence, consumers would have already served reclusion perpetua for a crime they never committed. As the saying goes, “Kung kulong ito, sana laya na ngayon”—a bitter lament for a freedom that remains elusive.

Clearly, utilities have kept consumers locked in this captive trap. If millions of customers suddenly walked away, utilities would be left holding the bag, forced to shoulder the financial weight of the legacy long-term Power Supply Agreements (PSAs) they signed.

Furthermore, lenders still view these long-term PSAs as the “golden ticket” for financing new projects, making them hesitant to back retail-only marketing deals.

Beyond these structural hurdles, policymakers and Retail Electricity Suppliers (RES) must prepare for a steep learning curve. Success demands smarter planning and marketing strategies that can genuinely capture household interest.

Is there a real escape route left? Industry players contend that if full-scale retail competition cannot yet reach the millions served by Meralco, other private utilities, and cooperatives, then the Green Energy Option Program (GEOP) could serve as “proof of concept.”
Roughly 1,000 to 2,000MW of uncontracted renewable capacity—sitting outside green energy auction contracts—could be offered to residential users. Because renewable capacities are VAT-free, buyers would instantly enjoy a 12 percent reduction compared to the bloated blended rates of utilities. As competition intensifies within the GEOP space, the pressure to slash prices will escalate, giving households real leverage.

The necessary policy backbone would be a decisive DOE Circular slashing the GEOP threshold to zero—moving far beyond the timid 50kW reduction currently proposed. If the DOE under Secretary Sharon Garin enforces this, it would be a concrete step toward easing the stifling burden of rising rates.

Singapore stands as the most fitting comparison for the Philippines, as both nations embarked on deregulation nearly side-by-side.

When Singapore launched retail competition in 2018, it utilized a calculated rollout, starting with a pilot in Jurong involving 108,000 households. Following that success, it flipped the switch to nationwide competition on Nov. 1, 2018.

Singapore’s experience shows that competition benefits everyone; even regulated tariffs eased under competitive pressure. For those who choose not to switch, the incumbent utility provides a safety net of default supply at regulated rates.

The Bottom Line

Giving households their long-overdue “power of choice” is the single most meaningful lifeline available. After 20 years of deregulation, one thing is blindingly obvious: utilities treat passing sky-high bills to consumers like a casual party favor—and they couldn’t care less if it burns a hole in your pocket.