WHEREAS,Section 2 of Republic Act No. 9136, otherwise known as the "Electric Power Industry Reform Act of 2001 (EPIRA)" declared the Policy of the State among others the following:

(a) Ensure the quality, reliability, security and affordability of the supply of electric power;

(b) Ensure transparent and reasonable prices of electricity in a regime of free and fair competition and full public accountability to achieve greater operational and economic efficiency and enhance the competitiveness of Philippine products in the global market;

(c) To enhance the inflow of private capital and broaden the ownership base of the power generation, transmission and distribution sectors; and

(d) Protect the public interest as it is affected by the rates and services of electric utilities and other providers of electric power;

WHEREAS,upon compliance with the pre-conditions set forth under Section 31 of the EPIRA, the Retail Competition and Open Access (RCOA) shall be mandated in the following manner:

(a) Initial implementation for electricity end-users with an average demand of one (1) megawatts (MW) and above, for the preceding twelve (12) months;

(b) Two (2) years after the initial implementation, reduce the threshold to 750 kilowatts (kW) electricity end-users where at this level, Aggregators shall be allowed to supply electricity to electricity end-users whose aggregated demand within a contiguous area is at least 750 kW; and

(c) Thereafter, the Energy Regulatory Commission (ERC) shall evaluate the performance of the market, which outcome shall be the basis of the reduction of the threshold level until it reaches the household level;