Manila Water facilities among first under 100-kW RAP threshold

MANILA, Philippines — Manila Water Company has become one of the first organizations in the country to transition facilities under the expanded Retail Aggregation Program (RAP), marking another milestone in its efforts to secure more stable and sustainable energy sources for its operations.

The transition follows the implementation of the Energy Regulatory Commission’s (ERC) Resolution No. 22, Series of 2025, which lowered the program’s eligibility threshold from 500 kilowatts (kW) to 100 kW. The change allows more facilities and businesses to access competitive electricity suppliers and renewable energy options.

As a long-time advocate of reforms in the energy sector, Manila Water actively supported enhancements to RAP, including the reduction of the eligibility threshold and the consolidation of facilities within the same distribution utility.

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These improvements are expected to open the program to thousands of small and medium-sized electricity consumers across the country.

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On June 26, 2026, Manila Water successfully transitioned 47 facilities under MERALCO with a combined demand of 209 kW to electricity sourced from 100 percent renewable energy (RE).

Laguna Water also shifted six facilities under FLECO with a combined demand of 318 kW. The facilities include deep wells, line booster stations, and offices that support the delivery of water and wastewater services to customers.

The shift is expected to help shield the company from volatile electricity costs and potential supply disruptions. Since electricity is a major operating expense in water service delivery, securing more competitive and sustainable power sources helps Manila Water manage costs while maintaining reliable service for customers.

“Manila Water played a crucial role in engineering, development, and advocacy of the amended Retail Aggregation Program to expand its reach and impact. Last year, we became the first company to switch under RAP at the 500kW threshold, and today we are once again demonstrating leadership by being among the first to transition under the new 100kW threshold. This achievement reflects the strong collaboration between industry and regulators in addressing policy gaps and maximizing the benefits of meaningful energy market reforms,” said Dr. King Verzola, Manila Water Energy Director.

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The transition is part of Manila Water’s broader strategy to strengthen operational resilience while accelerating its renewable energy adoption.

According to Manila Water East Zone Chief Operating Officer Arnold Mortera, most of the company’s grid-supplied facilities now benefit from competitive electricity sourcing.

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“Today, 96 percent of Manila Water’s electricity requirements are supplied through Retail Electricity Supply arrangements, while 3 percent comes from solar energy and only 1 percent remains under captive supply. With the implementation of RAP at the 100-kW threshold, nearly all our grid-supplied facilities will now benefit from competitive retail electricity procurement. This provides greater protection against volatile electricity rates, helping us manage operating costs and ultimately safeguard our customers from unnecessary increases in water service costs,” Mortera said.

Manila Water expects additional facilities across its service areas to transition under RAP in the coming months, further strengthening the company’s energy portfolio and reducing reliance on traditional power procurement.

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By helping advance energy market reforms while adopting cleaner and more competitive energy solutions, Manila Water continues to demonstrate how responsible utility management can create long-term value for customers, support business sustainability, and contribute to the country’s energy transition.