{"id":329321,"date":"2024-09-05T12:30:56","date_gmt":"2024-09-05T04:30:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329321"},"modified":"2024-09-05T12:30:58","modified_gmt":"2024-09-05T04:30:58","slug":"trade-the-news-sc-junks-erc-appeal-vs-smc-meralco-power-deal","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-sc-junks-erc-appeal-vs-smc-meralco-power-deal\/","title":{"rendered":"Trade the News: SC junks ERC appeal vs SMC-Meralco power deal"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>NEUTRAL on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>San Miguel Corp.<\/td><\/tr>
Stock Code<\/strong><\/td>SMC<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 102.60<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
Potential Impact of this News<\/strong><\/td>NEUTRAL on the stock price<\/strong><\/td><\/tr>
Company<\/strong><\/td>Manila Electric Co. (Meralco)<\/td><\/tr>
Stock Code<\/strong><\/td>MER<\/td><\/tr>
Long-term Recommendation on the Stock<\/strong><\/td>Hold<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 431.22<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

The Supreme Court (SC) has junked with finality the power regulator\u2019s appeal against the termination of the supply contract of energy giants led by business titans Manuel V. Pangilinan and Ramon Ang.<\/p>\n\n\n\n

In a regulatory filing, San Miguel Corp. said its legal team has received a copy of the SC 1st division\u2019s resolution yesterday, which upheld the high tribunal\u2019s Aug. 3 decision allowing the revocation of a 10-year power supply deal.<\/p>\n\n\n\n

Earlier, the Energy Regulatory Commission (ERC) asked the SC to nullify a Court of Appeals injunction order on the power supply agreement (PSA) between Manila Electric Co. (Meralco) and SMC units South Premiere Power Corp. (SPPC) and San Miguel Energy Corp., now Sual Power Inc.<\/p>\n\n\n\n

\u201cConsidering that there is no substantial argument to warrant a modification of this court\u2019s resolution, the court further resolved to deny reconsideration with finality,\u201d the SC stated in the decision.<\/p>\n\n\n\n

The SC likewise denied the issuance of a temporary restraining order (TRO) sought by the Office of Solicitor General (OSG), which serves as the ERC\u2019s statutory counsel, for \u201clack of merit.\u201d<\/p>\n\n\n\n

Asked for comment, ERC chairperson and CEO Monalisa Dimalanta said they are now consulting with the OSG as \u201cwe have not received our copy yet of the SC resolution.\u201d<\/p>\n\n\n\n

The issue stemmed from a May 2022 joint motion for rate adjustments filed by SMC units and Meralco seeking a temporary increase in the contract price under the PSAs to recover incremental fuel costs, citing a \u201cchange in circumstances.\u201d<\/p>\n\n\n\n

Four months later, the power regulator junked the foregoing joint motions, which prompted SPPC to ask the CA to issue a TRO against or annul, reverse and set aside the ERC order.<\/p>\n\n\n\n

In January 2023, the CA 13th division granted SPPC\u2019s application for an issuance of a writ of preliminary injunction.<\/p>\n\n\n\n

The OSG, however, earlier argued that the CA exceeded its authority when it instructed SPPC and Meralco to engage in renegotiations for their PSA.<\/p>\n\n\n\n

(News Source: Philippine Star<\/a>)<\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

This report is prepared by PinoyInvestor\u2019s partner broker below. Find out more about our partner brokers<\/a> and sign up to avail their complete trading brokerage services.<\/em><\/em><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Take advantage of the price opportunity that might arise when the news hits. Trade the news!<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1371],"tags":[],"class_list":["post-329321","post","type-post","status-publish","format-standard","hentry","category-trade-the-news","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\/329321","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\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=329321"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329321\/revisions"}],"predecessor-version":[{"id":329323,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329321\/revisions\/329323"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=329321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=329321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=329321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}