PRESS RELEASE
11 June 2026

PCC, PEMC hold policy dialogue on power sector switching barriers

Policy dialogue between the PCC and PEMC, held on May 22, 2026.

On May 22, the Philippine Competition Commission (PCC) held a strategic policy dialogue with the Philippine Electricity Market Corporation (PEMC) to discuss the findings of a PCC study on competition and switching barriers in the retail electricity market. This session is part of the PCC’s continuous stakeholder validation process, following a similar briefing with the Independent Electricity Market Operator of the Philippines on March 18. 

The study revealed high market concentration in the retail electricity sector, noting that vertical integration has resulted in a market dominated by a few conglomerates.  While the Electric Power Industry Reform Act (EPIRA) permits entities to operate in both power generation and electricity distribution, the study observed that retail electricity suppliers (RES) affiliated with major power generators hold inherent structural advantages over smaller, independent competitors. Both the PCC and PEMC agreed that this market landscape warrants closer monitoring to fully assess its long-term impact on competition. 

The findings also showed that a significant portion of contestable customers have yet to switch suppliers amid barriers to switching, such as lack of awareness of the various customer choice programs and limited knowledge of the switching process. Furthermore, the study noted a visible trend of “affiliate switching,” where a contestable customer moves to a different RES, which however is under the same participating group. While the study showed that heavy affiliate concentration could limit the diversification of the retail market, PEMC’s monitoring data indicates that such movements are frequently driven by legitimate commercial factors, including contract flexibility, pricing structures, and established service quality. 

PEMC acknowledged that the findings of the PCC’s market study on switching barriers closely align with the trends tracked by its own Market Surveillance Committee. The dialogue highlighted that transition delays often stem from systemic infrastructure limitations, particularly the procurement and installation of retail metering systems within franchise areas. In addition, the PCC and PEMC recognized that navigating complex contract provisions remains a challenge, as many contestable customers lack dedicated, internal technical teams to evaluate competing commercial offers. 

PEMC noted that data from its 2025 annual report shows a distinct increase in electricity consumption volume within the competitive retail electricity market, driven by state-led choice programs over the past year. With the Energy Regulatory Commission lowering the contestability threshold from 500 kilowatts to 100 kilowatts beginning June this year, PEMC anticipates a sharp increase in registrations among smaller commercial and industrial players. While a true transition down to the residential or household level awaits future policy directives from the Department of Energy, both the PCC and PEMC expect the expansion of the retail aggregation program to serve as a vital mechanism for smaller end-users to collectively participate. 

The PCC and PEMC are negotiating a cooperation agreement that outlines specific mechanisms for data sharing regarding market settlement processes and pricing behaviors. The agreement will also institutionalize protocols for PEMC to alert the PCC of observed market patterns or anomalous behaviors that may potentially warrant competition review and joint policy advocacy. 

The PCC conducts market studies to assess competition dynamics within key industries, the results of which inform the Commission’s enforcement and policy reform initiatives. Through policy dialogues, the PCC can validate initial findings by discussing them with institutional partners prior to wider information dissemination.

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REFERENCE:  
publicaffairs@phcc.gov.ph  
Public Affairs and Research Division
Communications and Knowledge Management Office
Philippine Competition Commission