Meralco isn't alone in the "Electricity Business". Is it possible to switch?
Most Filipinos grew up thinking electricity is just Meralco but the power industry is bigger than one company — and quietly, alternatives have been building.
First, you need to know this. Meralco DOES NOT generate your electricity. It distributes it, meaning it owns the wires, poles, and meters that deliver power from plants to your home.
The rate you pay Meralco is actually made up of multiple charges:
- Generation
- Transmission
- Distribution!!
- Subsidies and,
- Taxes.
Meralco's actual "take" is just the distribution charge which accounts for about 17.5% of your total bill.
That’s a huge chunk in favor of Meralco and that’s why they don’t want you to know about the other players in town.
PLAYER 1: Retail electricity suppliers (RES)
Under the EPIRA law (Electric Power Industry Reform Act), consumers using at least 100 kW of power per month are considered "contestable".
Contestable means if you’re a big time consumer, you can shop for a different electricity supplier instead of buying from Meralco.
That’s where Retail Electricity Suppliers (RES) enter, and there are several licensed ones: Clyriel, Aboitiz Power Retail, GNPower Retail, Pacific Light, and others.
They buy power from generators in bulk and resell it to large commercial and industrial customers (sometimes at better rates than Meralco).
If you run a factory, a large office building, or a hotel, this matters to you. If you're a household or a small café, it currently doesn't apply.
PLAYER 2: Solar (The DIY alternative that got Meralco’s attention)
Yes, this player is you.
Installing rooftop solar doesn't mean you "leave" Meralco — but it does mean you generate your own electricity during the day and reduce how much you buy from them.
Under the Net Metering Program, you can even sell excess solar power back to the grid and have it credited on your bill.
A typical residential solar setup (5–10 kW) costs ₱200,000–₱400,000 upfront and pays for itself in 5–8 years depending on usage.
Companies like SolarNRG, Solaric, and CleanTech Solar have made installation more accessible.
PLAYER 3: Electric Cooperatives
Usually a non-stock, non-profit utility managed by the government-linked National Electrification Administration (NEA).
There are over 100 electric cooperatives in the country covering provinces from Batangas to Bukidnon.
Some are well-run; others are notoriously slow and unreliable.
The structure is the same as Meralco — they distribute, not generate — but the quality of service and rates vary wildly.
Coopelectric, BLCI (Batangas), and CENECO (Negros) are among the larger ones.
All of these are outside Metro Manila and it’s designed that way. The reason why is for another article in itself.
That means if you’re on a fan of Meralco and you’re in the metro; and moving to the provinces isn’t an option then you’re out of luck.
Can you actually make the switch?
If you’re a household or small business: Not really. You’re in Meralco’s franchise area and below the 100 kW threshold for retail competition. Your practical alternative is rooftop solar — which doesn’t replace Meralco but meaningfully reduces your dependence on it.
If you’re a medium-to-large business: Yes. If your monthly consumption hits 100 kW, you’re “contestable” and can negotiate with a licensed RES. Some businesses have shaved 10–20% off their electricity costs this way.
If you’re a developer or investor: The real opportunity is upstream — generation, storage, and microgrids. That’s where the policy is loosening and the margins are still being discovered.