MPower, the retail electricity supply arm of Manila Electric Co., has finalized an agreement with Rustan Coffee Corp. to provide power to dozens of Starbucks locations in Metro Manila through a government-backed aggregation scheme.

The deal consolidates the energy requirements of 60 Starbucks branches, representing a combined demand of more than three megawatts, MPower said in a statement on Tuesday. The partnership is an expansion of the Retail Aggregation Program (RAP), which allows smaller energy consumers to pool their demand to qualify for the competitive power market.

Rustan Coffee, the authorized licensee of Starbucks in the Philippines, is using the framework to streamline its utility operations and advance its broader environmental goals. The transition to MPower’s supply began in November 2025 and is already impacting the coffee chain’s bottom line, according to company leadership.

“In today’s evolving business environment, it is important for companies like ours to continue exploring ways to operate more efficiently,” said Rustan Coffee President Noey Lopez. “Since transitioning, we have begun to see initial savings in our electricity costs.”

Under current energy regulations, the RAP framework enables end-users to aggregate their consumption to meet the 500-kilowatt threshold required to be classified as a "contestable customer."

This status allows businesses to bypass traditional captive distribution rates, choose their own electricity provider, and negotiate more favorable pricing structures. The barrier to entry for this program is set to lower further in June, when the eligibility threshold will drop to 100 kilowatts.

The shift to the retail competition and open access framework aligns with Rustan Coffee’s existing efficiency initiatives. The company has previously implemented the use of water-saving fixtures, 100 percent LED lighting, and high-efficiency air-conditioning systems across its portfolio.

Redel Domingo, Meralco senior vice president and head of MPower, said the move by the coffee retailer serves as a blueprint for other enterprises in the service sector. By pioneering the use of the aggregation program within the food and beverage industry, the company is demonstrating how businesses with fragmented, multi-facility footprints can capitalize on market liberalization to reduce overhead.

MPower currently holds a dominant position in the retail energy market within Meralco’s franchise area, providing bespoke supply contracts to industrial and commercial clients. The company’s parent, Meralco, is the largest power distributor in the Philippines. (Gabriell Christel Galang)