AboitizPower prepares for wider RCOA market

June 9, 2026 | 12:00am

MANILA, Philippines — Aboitiz Power Corp. is gearing up for a larger market of customers eligible to choose their electricity supplier while assessing the potential impact of a shrinking captive customer base on its existing contracts.

Later this month, the government will lower the minimum threshold under the retail competition and open access (RCOA) program to 100 kilowatts from 500 kW, allowing more consumers to directly negotiate their power supply.

The move is expected to reduce the captive market, or consumers that rely on distribution utilities (DUs) for electricity because they are not eligible to choose their suppliers.

As the owner of two of the country’s largest DUs, AboitizPower said the expanded retail market could have implications for its existing power supply contracts.

If a significant number of captive customers migrate to the retail market, electricity demand from DUs could fall below the volumes covered by their contracted supply, potentially leaving them with excess capacity.

The impact is particularly relevant for AboitizPower, given the scale of its distribution business.

Aboitiz-led Visayan Electric Co. Inc., the country’s second-largest power utility, served 523,484 customers in 2025, according to company data.

Another AboitizPower utility, Davao Light and Power Co. Inc., the third-largest, had a customer base of 515,359 last year.

“As the retail market broadens, the company will need to deepen its understanding of customers and enhance its ability to offer compelling and competitive solutions,” AboitizPower said.

The company added that it remains confident in its ability to navigate the transition and capitalize on emerging opportunities, reinforcing its position as a leading electricity retailer in the country.

In the retail electricity segment, the Aboitiz Group currently ranks as the second-largest player in terms of contestable customers – those eligible to choose their power supplier – with a market share of 27 percent.

Early-year data pointed to continued cost advantages in the retail electricity market.

In fact, sourcing power through retail suppliers remained more cost-efficient than relying on DUs, according to the Philippine Electricity Market Corp.

PEMC data showed that the retail market generated estimated savings of over P2.9 billion in the first two months of the year. As of end-February, registered contestable end-users stood at 2,620.