Laguna Water, LARC pioneer power cost reduction via retail aggregation program

Laguna Water and Laguna Aquatech Resources Corporation (LARC) have become the first utilities outside Metro Manila to implement the Energy Regulatory Commission’s (ERC) Retail Aggregation Program (RAP), aggregating 5.2 MW of electricity demand to access lower-cost power through PrimeRES Energy and Meralco’s distribution network in the Philippines. This move covers 92 facilities—4.3 MW from Laguna Water and 900 kW from LARC—and is expected to reduce energy costs and enhance water service affordability in the province.

The RAP allows smaller users to access the competitive electricity market by consolidating demand, enabling utilities like Laguna Water and LARC to negotiate better rates and reinvest savings into service improvements. According to Manila Water CEO Jocot De Dios, energy remains one of the biggest cost drivers in water operations, and initiatives like RAP are critical for long-term sustainability.

Laguna Water, a JV between Manila Water Philippine Ventures and the Laguna Provincial Government, serves several cities and municipalities in Laguna. LARC, a JV between Manila Water and the Laguna Water District, manages water supply systems in four towns.