A FAST-FOOD chain has partnered with a retail electricity supplier to reduce power costs at its 36 restaurants across Cebu and Negros Island, as Cebu-based Vivant Corp. expects stronger growth in its retail electricity business following the expansion of the Retail Competition and Open Access (RCOA) program.
The partnership will initially cover 36 McDonald’s restaurants, with 32 stores — 16 each in Cebu and Negros Occidental — joining the Retail Aggregation Program (RAP). The remaining four stores will transition individually through RCOA.
Through Corenergy, participating restaurants are expected to reduce electricity costs by about 10 percent on average while locking in fixed electricity rates for two years, providing greater cost predictability. Around 10 percent to 15 percent of their electricity supply will also come from solar energy.
“As we continue to grow in the Visayas, we’re equally focused on improving how our restaurants operate,” McDonald’s Philippines managing director Margot Torres said.
“Electricity is one of the largest operating costs in our business. By working with Corenergy, we can better manage this expense and build more energy-efficient restaurants as we grow,” she added.
RAP and RCOA allow qualified electricity consumers to source electricity from licensed retail electricity suppliers instead of their distribution utilities, giving businesses access to more competitive rates and greater flexibility in managing their energy requirements.
Key growth driver
The partnership comes as Vivant expects Corenergy to become a key growth driver after the Energy Regulatory Commission lowered the RCOA threshold to 100 kilowatts, expanding the pool of contestable customers eligible to choose their electricity supplier.
“Corenergy is one of the pillars of Vivant Energy’s growth moving forward, especially now with the RCOA threshold being lowered to 100 kilowatts. It just opens up thousands of new customers, so we’re very bullish on that,” said Arlo G. Sarmiento, chief executive officer of Vivant Corp. in an interview in May.
Sarmiento said Corenergy currently has about 60 megawatts of contracted capacity and expects this portfolio to expand as more qualified consumers become familiar with the open access program.
“As more of these 100-kilowatt customers get used to or get familiar with what open access is, and now that they have this power of choice, we expect that Corenergy will be signing up more customers and will contribute to Vivant’s bottom line even more,” he said.
Businesses are seeking options
Corenergy president Francis del Val said businesses are increasingly seeking greater choice and cost predictability amid changing energy market conditions.
“Through RAP and RCOA, we are helping McDonald’s access energy solutions that respond to the needs of its growing restaurant network. This includes more competitive rates and renewable energy options that support more efficient operations and long-term business performance,” he said.
The collaboration also supports the companies’ expansion in the Visayas. McDonald’s has opened seven new restaurants in Cebu this year, while Corenergy, backed by Cebu-based Vivant Energy, continues to expand its retail electricity business in the region.
“For us, keeping value and affordability within reach of our customers means finding efficiencies across our operations,” Torres said.
“By managing significant expenses such as electricity more strategically, we can support the long-term sustainability of both our company-owned and franchise restaurants.”
By the end of 2026, McDonald’s expects about 64 percent of its restaurant network nationwide to transition under RAP, as part of its broader effort to improve energy efficiency and cost predictability across its operations. / KOC