{"id":330199,"date":"2024-11-04T11:55:45","date_gmt":"2024-11-04T03:55:45","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330199"},"modified":"2024-11-04T11:55:47","modified_gmt":"2024-11-04T03:55:47","slug":"trade-the-news-mer-to-refund-p16-billion-to-consumers","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-mer-to-refund-p16-billion-to-consumers\/","title":{"rendered":"Trade the News: MER to refund P16 billion to consumers"},"content":{"rendered":"\n
Potential Impact of this News<\/strong><\/td>NEGATIVE 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 482.24<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Manila Electric Co. (MER) has estimated around P16 billion worth of refunds to consumers once the Energy Regulatory Commission (ERC) resolves its fifth regulatory rate reset.<\/p>\n\n\n\n

\u201cIn our initial estimate for at least three years, that would be around P16 billion. So that\u2019s a big, big, big relief for consumers. That\u2019s why we want to have that closure already,\u201d Meralco senior vice president and head of regulatory management Jose Ronald Valles said.<\/p>\n\n\n\n

He said the refund represents the difference between the actual weighted average price and the maximum average price, or the highest allowable costs that can be charged to consumers.<\/p>\n\n\n\n

Citing suspended ERC chairperson Monalisa Dimalanta, Valles said the ERC \u201csupposedly ruled\u201d that Meralco\u2019s fifth regulatory period (5RP) covering 2022 to 2026 is already considered lapsed.<\/p>\n\n\n\n

During a lapsed period, consumers pay charges that are no longer reflective of the current cost of the service while awaiting the approval of a new rate.<\/p>\n\n\n\n

Following the approval of a new rate, the power regulator may order distribution utilities to implement necessary adjustments such as a refund scheme to account for any discrepancies during the lapsed period.<\/p>\n\n\n\n

Meralco, Valles said, is waiting for the ERC\u2019s official decision on its 5RP to start the preparation process for the 6RP and trigger the corresponding filing of the refund application.<\/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-330199","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\/330199","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=330199"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330199\/revisions"}],"predecessor-version":[{"id":330201,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330199\/revisions\/330201"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330199"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330199"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330199"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}