{"id":329858,"date":"2024-10-13T23:38:40","date_gmt":"2024-10-13T15:38:40","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=329858"},"modified":"2024-10-13T23:41:48","modified_gmt":"2024-10-13T15:41:48","slug":"trade-the-news-mer-sees-lower-generation-charge-for-october","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-mer-sees-lower-generation-charge-for-october\/","title":{"rendered":"Trade the News: MER sees lower generation charge for October"},"content":{"rendered":"\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 458.45<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Manila Electric Co. (MER) expects a reduction in the cost of power procured from suppliers for the October billing cycle, attributed to lower electricity prices in the Wholesale Electricity Spot Market (WESM), a company official said.<\/p>\n\n\n\n

\u201cInitial indication shows a possible decrease in the generation charge in the October billing,\u201d Meralco Vice-President and Head of Corporate Communications Joe R. Zaldarriaga said in a Viber message on Tuesday.<\/p>\n\n\n\n

\u201cThis is primarily driven by lower WESM charges as prices went down due to reduced demand brought about by cooler temperatures in the September supply month,\u201d he added.<\/p>\n\n\n\n

Preliminary data from the Independent Electricity Market Operator of the Philippines (IEMOP) showed that the average power price system-wide declined by 34.7% to P3.88 per kilowatt-hour (kWh) in September from P5.94 per kWh a month earlier.<\/p>\n\n\n\n

IEMOP, the operator of the Wholesale Electricity Spot Market, attributed the decline to cooler weather conditions, which reduced demand.<\/p>\n\n\n\n

WESM is where energy companies can buy power when their long-term contracted power supply is insufficient for customer needs.<\/p>\n\n\n\n

\u201cAlso contributing to this is the end of the collection of the deferred May 2024 WESM costs last month,\u201d Mr. Zaldarriaga said.<\/p>\n\n\n\n

To recall, the Energy Regulatory Commission directed the staggered collection of charges related to WESM purchases over a four-month period to mitigate the impact of high generation rates.<\/p>\n\n\n\n

Last month, Meralco customers saw an increase in their electricity bills due to higher transmission charges.<\/p>\n\n\n\n

Overall rate climbed by P0.1543 per kWh to P11.7882 per kWh in September from P11.6339 per kWh in August.<\/p>\n\n\n\n

Generation charge, which usually accounts for at least 50% of the monthly electricity bill, went down by P0.1547 per kWh last month.<\/p>\n\n\n\n

Transmission charge, on the other hand, rose by P0.2913 per kWh due to higher ancillary service charges following the resumption of commercial operations of the reserve market in August.<\/p>\n\n\n\n

Meralco is the main power distributor for Metro Manila and nearby areas, covering 39 cities and 72 municipalities, delivering power to at least 7.6 million customers.<\/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-329858","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\/329858","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=329858"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329858\/revisions"}],"predecessor-version":[{"id":329864,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/329858\/revisions\/329864"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=329858"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=329858"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=329858"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}