{"id":330974,"date":"2024-12-18T22:58:00","date_gmt":"2024-12-18T14:58:00","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330974"},"modified":"2024-12-18T23:25:26","modified_gmt":"2024-12-18T15:25:26","slug":"trade-the-news-erc-denies-mer-masinloc-power-supply-deal","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/trade-the-news-erc-denies-mer-masinloc-power-supply-deal\/","title":{"rendered":"Trade the News: ERC denies MER-Masinloc Power supply deal"},"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

THE ENERGY REGULATORY Commission (ERC) has denied the request for provisional authority by Manila Electric Co. (MER) and San Miguel Corp.\u2019s Masinloc Power Co. Ltd. (MPCL) for their 500-megawatt (MW) power supply agreement (PSA).<\/p>\n\n\n\n

Although the ERC found that Meralco\u2019s bidding complied with the competitive selection process (CSP) policies, it determined that the urgency of the supply from MPCL has not been established.<\/p>\n\n\n\n

\u201cConsidering that the expected delivery date of the instant PSA shall not occur until 26 August 2025, the urgency of supply from MPCL has not been established,\u201d the regulator said.<\/p>\n\n\n\n

The ERC said that it considers granting provisional authority to the applicants to be \u201cpremature.\u201d<\/p>\n\n\n\n

Following the CSP conducted in August, MPCL emerged as one of the bidders with a favorable offer, with the company offering 500 MW out of the required contract capacity of 600 MW, for P5.6015 per kilowatt-hour.<\/p>\n\n\n\n

The government requires distribution utilities to choose the cheapest electricity supply through a CSP.<\/p>\n\n\n\n

The 15-year PSA resulting from the CSP will cover the power distributor\u2019s 600-MW baseload supply, effective on Aug. 26, 2025.<\/p>\n\n\n\n

MPCL is a subsidiary of San Miguel Global Power, the power arm of SMC. It owns the 659-MW coal-fired thermal power plant in Zambales.<\/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-330974","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\/330974","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=330974"}],"version-history":[{"count":1,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330974\/revisions"}],"predecessor-version":[{"id":330976,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/330974\/revisions\/330976"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=330974"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=330974"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=330974"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}