Wednesday, November 14, 2007
MER - gap up
MER = 78.5 (2.6%)
MER formed a gap up white candle. I hope this is a start of a rally that will test and close the resistance level made by a previous gap down.
MER seems to have found a support level at 76.
Resistance: 81.5-83 (previous gap down), 32/65MA
Support: 77.5-77 (recent gap up), 76
Good luck to all MER traders!
Hiked power bills seen as Meralco seeks rate adjustment anew (from Citiseconline and Technistock)
Despite the recent reduction in Manila Electric Co.'s (Meralco) rates, the country's largest distributor is seeking a series of adjustments that will significantly jack up electric bills, a lobby group warned Tuesday. The impending increases come at a bad time, as consumers are still reeling from the unabated rise in fuel prices. "Meralco says it will reduce residential rates by P0.34 per kilowatt-hour beginning November. That's the good news. The bad news is that Meralco has a pending rate increase of P9.20 per kilowatt-hour," Raul T. Conception, Consumer and Oil Price Watch chairman, said. The amount represents Me-ralco's cumulative under recoveries from September 2006 to July this year. They piled up after a Supreme Court ruling in August last year preventing the automatic pass on of cost adjustments to consumers such as generation charges without undergoing public consultations. The automatic pass on of these cost adjustments were later resumed after Congress amended the Electric Power Industry Reform Act's (EPIRA) implementing rules and regulations. The under recoveries that are waiting to be collected cover 10 petitions for rate adjustments that Meralco filed. Because of the huge amount, Concepcion urged the distribution utility to stagger its recovery to ease the burden on consumers. "Because a P9.20 per kilowatt-hour rate increase is big, [we are] requesting Meralco to stagger this increase over a 12 month period," he added. Earlier, Jesus P. Francisco, Meralco president, said that the recovery period for these charges may be stretched for 9 months, 12 months or 18 months depending on the assessment of the Energy Regulatory Commission (ERC). Concepcion however said the regulator has yet to act on this pending rate increase. He noted that the cumulative under recoveries for Meralco's first six applications alone would amount to P6.1714 per kilowatt-hour. "Therefore should ERC grant a final authority and implement over a 12 month period starting October 2007 to September 2008, there will still be a cumulative balance of P3.0255 per kilowatt-hour," he said