{"id":323660,"date":"2023-06-14T12:16:00","date_gmt":"2023-06-14T04:16:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=323660"},"modified":"2023-06-14T22:48:35","modified_gmt":"2023-06-14T14:48:35","slug":"lower-electricity-spot-prices-good-for-smc-and-ap","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/lower-electricity-spot-prices-good-for-smc-and-ap\/","title":{"rendered":"Lower electricity spot prices good for SMC and AP"},"content":{"rendered":"\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\">Analysis and Recommendation<\/h2>\n\n\n\n<p>Manila Electric Co. (MER) announced that it expects power rates to decline next month amid lower demand, given that the rainy season has officially started in June. Particularly, MER stated that even in the daily spot market results, it is already seeing a decrease in power demand in the Luzon grid as they come off from their highs in May &#8211; which was triggered due to the summer season. As a result, Meralco is likewise anticipating spot market prices to moderate moving forward.<\/p>\n\n\n\n<p><strong>Our View:<\/strong> Lower power rates will be good for consumers. Lower temperatures will be good given the country\u2019s low energy reserves. While electricity prices will remain elevated, the stable electricity prices should bode well for business and their margins. The lower power costs will marginally affect MER, given that its power generation business is mainly driven now by Pacific Light which is operating in Singapore.<\/p>\n\n\n\n<p>The projected lower spot prices could benefit <strong>San Miguel Corp. (SMC)<\/strong> and<strong> Aboitiz Power Corp. (AP)<\/strong>. <\/p>\n\n\n\n<p>It can be recalled that AP\u2019s Thermal Luzon Inc. and SMC\u2019s SPPC locked-in 1-year fixed rates of P8.1447\/kWh and P8.3505\/kWh back in March 2023 and will be in effect for a year unless the Court of Appeals reinstates the 1,100MW contract of SMC requiring them to deliver power a P4.3\/kWh. <\/p>\n\n\n\n<p>AP really has a good read on the Philippine Power market and continues to make good decisions in the face of volatile global energy prices.<\/p>\n\n\n\n<div style=\"height:26px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p style=\"font-size:16px\"><em><em>This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about <a href=\"https:\/\/www.pinoyinvestor.com\/smartinvestor\/our-partner-brokers\/\">our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Here\u2019s a commentary on an important issue or event affecting the stock market<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-323660","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323660","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=323660"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323660\/revisions"}],"predecessor-version":[{"id":323663,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/323660\/revisions\/323663"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=323660"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=323660"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=323660"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}