{"id":330871,"date":"2024-12-12T23:00:00","date_gmt":"2024-12-12T15:00:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330871"},"modified":"2024-12-12T23:34:12","modified_gmt":"2024-12-12T15:34:12","slug":"trade-the-news-mers-electricity-rates-to-increase-in-december","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-mers-electricity-rates-to-increase-in-december\/","title":{"rendered":"Trade the News: MER’s electricity rates to increase in December"},"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 479.20<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
<\/div>\n\n\n\n

Households in areas served by Manila Electric Co. (MER) will have to tighten their belts this month, as the power distributor has announced an increase in electricity rates.<\/p>\n\n\n\n

The overall rate will climb by P0.1048 per kilowatt-hour (kWh) to P11.9617 per kWh in December from P11.8569 in November, Meralco said in a statement on Tuesday.<\/p>\n\n\n\n

Households consuming 200 kWh will see their monthly electricity bill go up by P21. Those consuming 300 kWh, 400 kWh, and 500 kWh will have to pay an additional P31, P42, P52, respectively.<\/p>\n\n\n\n

\u201cThis month\u2019s increase was largely due to higher generation charge, which goes to our power suppliers,\u201d said Joe R. Zaldarriaga, Meralco\u2019s vice-president and head of corporate communications.<\/p>\n\n\n\n

Generation charge rose by P0.1839 per kWh brought by the increased costs from the Wholesale Electricity Spot Market (WESM) and power supply agreements (PSAs).<\/p>\n\n\n\n

WESM charges climbed by P0.2531 per kWh due to the tighter supply conditions in the Luzon grid as average capacity on outage increased by around 396 megawatts.<\/p>\n\n\n\n

Charges from PSAs went up by P0.1050 per kWh due to weakening of the peso, which affected 51% of the costs, and lower average PSA dispatch.<\/p>\n\n\n\n

The peso closed at P58.62 a dollar on Nov. 29, weakening by P0.52 from its P58.10 finish on Oct. 31.<\/p>\n\n\n\n

Despite the impact of peso depreciation, which affected around 98% of the costs of independent power producers (IPPs), charges declined by P0.0410 per kWh as mitigated by higher IPP dispatch.<\/p>\n\n\n\n

WESM, PSAs, and IPPs accounted for 31.4%, 40.2%, and 28.3%, respectively, of the company\u2019s total energy requirement for the period.<\/p>\n\n\n\n

On other components, transmission charge dropped by P0.0940 per kWh due to lower ancillary service charges from the reserve market, the avenue to procure power reserves from the WESM.<\/p>\n\n\n\n

Taxes and other charges, on the other hand, increased by P0.0149 per kWh.<\/p>\n\n\n\n

\u201cPass-through charges for generation and transmission are paid to the power suppliers and the grid operator, respectively, while taxes, universal charges, and Feed-in Tariff Allowance (FIT-All) are all remitted to the government,\u201d the company said.<\/p>\n\n\n\n

Meralco\u2019s distribution charge has remained unchanged at P0.0360 per kWh since August 2022.<\/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-330871","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\/330871","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=330871"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330871\/revisions"}],"predecessor-version":[{"id":330873,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330871\/revisions\/330873"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330871"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330871"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330871"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}