RCOA: Giving Choice And Voice To The Filipino Consumer

Opinion Nic Satur Jr. April 22, 2021
https://www.advocatesomi.com/opinion/rcoa-giving-choice-and-voice-to-the-filipino-consumer

On April 9, 2021, the Philippines observed “Araw ng Kagitingan” or National Day of Valor. Filipinos are known the world over for bravery and patriotism, which shine through even in the midst of this very challenging global pandemic.

Among the challenges braved by ordinary Filipinos daily is the high cost of electricity. Recently, one of the country’s leading distribution utilities, Meralco, announced an increase in electricity rates. They however assured that disconnections will not be enforced until the end of the month in light of extended community quarantine measures.

The current problems that we all are facing right now underscore the importance of reliable and affordable energy services, which we at Kuryente.org believe can be ushered in by RCOA or the Retail Competition and Open Access of the EPIRA law.

The Retail Competition and Open Access (RCOA) is among the provisions of Republic Act No. 9136 (Rule 12), also known as the Electric Power Industry Reform Act of 2001 or EPIRA, which aims to provide quality, reliable, secure, and affordable electric power services, as well as to develop a competitive market for electricity.

Under RCOA, power distribution utilities such as Meralco, Aboitiz and the electric cooperatives will no longer have a monopoly on the retail supply of power, which will result in lower electricity costs and will afford consumers the freedom to choose their electricity supplier. Power supply retailers will have to compete with each other in terms of price and services, hence giving consumers the power of choice.

RCOA will not only lower the cost of electricity, but will potentially improve the delivery of services. It is also expected to usher in more competition, which will then put competitive pressure on the electricity retailers’ service efficiency, reliability, and affordability.

Supporting the Energy Regulatory Commission (ERC) and Department of Energy (DOE) in the implementation of the RCOA will benefit every Filipino household who relies on electricity now, more than ever.

In February 2021, ERC promulgated a Resolution expanding the RCOA threshold from 750kW to 500kW, which means that more industries could qualify and be allowed to freely choose their energy supplier. This is pursuant to its mandate under Section 31 of the Electric Powerwer Industry Reform Act (EPIRA) and Rule 12 of its Implementing Rules and Regulations (IRR) to promote competition and ensure the successful restructuring and modernization of the electric power industry.

According to ERC Chair Agnes Devanadera, the expansion of the RCOA coverage is the “embodiment of the EPIRA's end-goal of achieving competition at the retail or end-user level” and will help promote robust and fair competition to boost the country’s economy during these trying times.

As a consumer welfare organization, Kuryente.Org supports and will closely monitor the implementation of the RCOA.

There is no more patriotic act than putting others’ interest above one’s own. Implementing the RCOA is a humanitarian initiative that will ensure our kababayans, who have been languishing in this prolonged economic crisis, will have, at least, the power to choose what is best for them.