Competitive retail electricity market participants save P4.23B in 2025

POWER CONSUMERS in the competitive retail electricity market (CREM) saved about P4.23 billion last year compared to those still captive to their distribution utilities (DUs), according to the Philippine Electricity Market Corp. (PEMC).

In its annual retail market assessment report, PEMC said the savings were primarily driven by industrial consumption and the spike in generation rates charged by DUs in April last year.

Industrial customers accounted for 61.8% or P2.62 billion of the total while commercial customers contributed the remaining P1.62 billion.

“As baseload-oriented users, industrial customers can capture more substantial savings when competitive retail rates are available,” according to the PEMC, the governance arm of the Wholesale Electricity Spot Market.

Through CREM, contestable customers can choose where to source their supply of electricity while captive customers are required to stay within their respective DUs for their power requirements. 

In computing the savings, PEMC compared the monthly average CREM retail weighted rates with the average generation rates of the top five DUs by energy consumption for 2025.

The CREM remained relatively stable throughout the year, generally ranging from P5.3-P5.7 per kilowatt-hour (kWh). Meanwhile, the top five DUs showed greater variability during the period, with rates ranging from P5.44 to P6.29 per kWh.

PEMC said the 2025 data showed that CREM provides a relatively stable pricing environment, with rates that are “broadly competitive with traditional DU supply.”

“This stability suggests a more predictable cost profile for participating end-users, along with the flexibility to negotiate contract terms that better suit their operational needs,” it said.

The number of end-users registered for CREM increased from 1,837 in 2021 to 2,530 in 2025.

“The increase in CREM registrations suggests that more customers are exploring opportunities associated with retail competition,” PEMC said. — Sheldeen Joy Talavera