{"id":329706,"date":"2024-09-30T22:09:01","date_gmt":"2024-09-30T14:09:01","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329706"},"modified":"2024-09-30T22:09:03","modified_gmt":"2024-09-30T14:09:03","slug":"trade-the-news-mer-franchise-extension-approved-by-house-on-2nd-reading","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-mer-franchise-extension-approved-by-house-on-2nd-reading\/","title":{"rendered":"Trade the News: MER’s 25-year franchise extension approved by House on 2nd reading"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>POSITIVE 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 351.25<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

The House of Representatives approved on second reading late Tuesday a bill extending Manila Electric Co.\u2019s (MER) franchise for another 25 years, acting on it four years before its current franchise expires.<\/p>\n\n\n\n

House Bill (HB) No. 10926, which extends Meralco\u2019s operation beyond 2028, was approved by voice vote. The bill retains a provision preventing Meralco from expanding its service area outside Metro Manila, Bulacan, Cavite, Rizal, and parts of Pampanga, Laguna, Quezon, and Batangas.<\/p>\n\n\n\n

The House also adopted amendments to the bill\u2019s consumer interest provisions, requiring Meralco to include its social responsibility initiatives in its annual report, specifically efforts to provide electricity access to unenergized areas.<\/p>\n\n\n\n

\u201cMeralco\u2019s mandates under its current franchise were clear. It has met its mandates, hence its franchise merits renewal,\u201d Albay Rep. Jose Ma. Clemente S. Salceda said in plenary during his sponsorship of the bill.<\/p>\n\n\n\n

Mr. Salceda said Meralco has complied with its \u201cleast cost, efficiency, and reasonable price mandates,\u201d observing all government regulations. \u201cIt complies with all the rules of competitive selection, obliged by ERC (Energy Regulatory Commission) rules on maximum rates, as evidenced by the ERC itself.\u201d<\/p>\n\n\n\n

\u201cIt is among the lowest system losses and is highly dependable,\u201d he added. \u201cIt is on the lower end of rates among its neighboring [distribution utilities] in the region.\u201d<\/p>\n\n\n\n

Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, delivering electricity to at least 7.75 million Filipinos. It provides power to a region responsible for half of the country\u2019s gross domestic product output.<\/p>\n\n\n\n

The distribution utility\u2019s franchise should be renewed as it performed better than average power companies, according to Mr. Salceda, citing data on Meralco\u2019s outage frequency and duration. <\/p>\n\n\n\n

(News Source: Business World<\/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-329706","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\/329706","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=329706"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329706\/revisions"}],"predecessor-version":[{"id":329708,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329706\/revisions\/329708"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=329706"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=329706"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=329706"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}