Posted by hng33 > 2023-06-20 20:38 | Report Abuse

YTL geneco retailer actually offer selling electricity rate at 28.9sen kwh is actually slightly lower than last year. But, geneco in actual fetch even higher margin than last year as fuel gas cost is much more lower, resulted margin expansion.

As more and more public to lock in contract rate, less and less excess power channel to pool wholesale market, supply become less and demand is increasing in peak hour have causing spike in wholesale spot power rate now

Posted by Felix888 > 2023-06-20 20:39 | Report Abuse

EPF dumped just before the bad news.

Posted by dragon328 > 2023-06-20 20:39 | Report Abuse

@hng33, you have explained it very well. In short, volatile wholesale prices have little impact on PowerSeraya who has a vertical integrated structure that includes power generation and retailer arm. High wholesale prices affect the independent retailers who do not have generation arm to hedge against the cost, so they can easily go bankrupt when wholesale prices spike up like now.

Posted by cgtan2020 > 2023-06-20 20:50 | Report Abuse

@dragon328 can you help to go thru these https://www.ema.gov.sg/cmsmedia/Consultations/Electricity/2023/Final-Determination-Paper-TPC_.pdf https://www.ema.gov.sg/cmsmedia/Consultations/Electricity/2023/Annex_TPC_Feedback_and_Responses_.pdf and see how it will affect YTLP. kamsia

Posted by hng33 > 2023-06-20 20:52 | Report Abuse

Dragon328

Not only independent sole retailer need to buy wholesale power to supply to its customer, some generations with retailer division also need to complete to get wholesale power as their own production cannot meet their retailer demand.

These is because despite almost all power generation have own retailer, but their power capacity mismatch their supplies comtract demand end user. These is their business model alike produce 1 MW but need to supply 2 MW by leverage up their retail market share through bidding in wholesale market. These generation company may only meet 50% capacity only to consumer by sources anothet 50% in wholesale market. It is good time in last few year when wholesale market is xheap due to oversupply, but, it get backfire now as wholesale market is tight and rate is higher than their contract with customer, offsetting their profit

Posted by hng33 > 2023-06-20 21:16 | Report Abuse

Temporary Price Cap (TPC) mechanism is needed to act as a “circuit breaker”
to mitigate vicious cycle of sustained volatility and risk aversion in the SWEM and
restore the orderly functioning of the broader market. The TPC mechanism is intended to act as a short-term measure to stop the vicious cycle of volatility and risk aversion, and allow time to identify and address the
cause(s) of the extreme price volatility, by temporarily capping the USEP at a level
lower than the existing Energy Price Cap. When activated in times of extreme price
volatility, it will mitigate excessive risks to all SWEM participants including Gencos,
retailers and consumers buying from the SWEM, while still allowing the USEP to
fluctuate and reflect demand and supply conditions

a. All energy suppliers such as the Gencos will continue to submit energy
offer prices up to the Energy Price Cap of $4,500/MWh.
b. If the marginal energy offer price (i.e. the highest energy offer price
needed to meet system demand) is below the TPC, the USEP will
continue to be set based on the marginal energy offer price. If the
marginal energy offer price is at or above the TPC, the USEP will be
capped at the TPC

Posted by hng33 > 2023-06-20 21:25 | Report Abuse

All in, YTL seraya and its retailer, Geneco, have very least affected as YTL locked retail selling price 28.9sen kwh ahead for 6 month - 2 year and any excess electricity sell to wholesale marketwith TPC only affect in extreme cap level at 4500/MWh, a extreme PEAK hour, an outlier rate apply and cap at 4500/MWh or 4.5/KWh for only half an hour in each occasion, but these outlier, extreme high 4500/MWh now happening too many time in a day, have causing spike increase in final calculation for 24 hour average wholesale price.

The gov now trying is cap these extreme outlier time which fetch extreme high traffic rate at every half an hour occasion, limit these outlier in single day will decrease final 24 hour average wholesale price.

Posted by hng33 > 2023-06-20 21:35 | Report Abuse

Currently, YTL seraya geneco selling only 28.9sen kwh for contract customer and selling 45sen kwh (450 MWh) in wholesale market rate.

Gov only cap TAC occasion for extreme outlier rate at 4500 MWh (only apply to half an hour for each occasion) to try to reduce 24 hour average wholesale market rate.

Currently, wholesale rate is 450 Mwh in April, already further spike up to 520 Mwh in month of May and likely in june as well

Posted by Jaeger > 2023-06-20 21:42 | Report Abuse

Felix888, thanks for the info

Posted by Zhuge_Liang > 2023-06-20 21:49 | Report Abuse

Dear dragon328,
Your posting.
Quote !!
By FY2024, I am projecting for:

1) PowerSeraya to report similar level of PBT of around RM800 million to RM1.0 billion a quarter
Unquote !!

Will PBT of PowerSeraya in FY2024 higher than FY2023 ?
If it is higher, just ignore the new ruling.
What we want to see is "there is a growth in PBT in FY2024 compared against FY2023".
A small reduction in PBT will not cause the share price to drop very drastically.
In a bear market, any bad news will affect the share price.
We invest for a bit longer term, we should focus on growth of earning.
As long as there is a growth in earning, we are in a very safe situation.
We should invest in a easy manner, not focusing on every minor issues.
My 2 cents opinion.

Posted by Zhuge_Liang > 2023-06-20 21:59 | Report Abuse

I look at this share price dropped as a good opportunity to buy on weakness.
Those missed out this stock have another chance to buy it cheap.

Posted by hng33 > 2023-06-20 23:14 | Report Abuse

Currently, YTL seraya geneco selling only 28.9sen kwh for contract customer and selling 45sen kwh (450 MWh) in wholesale market rate.

Gov only cap TAC occasion for extreme outlier rate at 4500 MWh (only apply to half an hour for each occasion) to try to reduce 24 hour average wholesale market rate.

Currently, wholesale rate is 450 Mwh in may, already further spike up to 520 Mwh in month of May and likely in june as well

Singapore average wholesale electricity for 2023, wholesale price vs. retail contract selling price to customer by geneco)
January - 219.13 MWh (21.9 sen kwh, lower than retail contract selling price)
February - 222.53 MWh (22.2 sen kwh, lower than retail contract selling price)
March - 337.77 (33.7sen, higher than retail contract selling price)
April - 324.04 (32.4sen kwh, higher than retail contract selling price 28.9sen kwh)
May - est 450 (45sen kwh, higher than retail contract selling price 28.9sen kwh)
June - est 520 (52sen kwh, higher than retail contract selling price 28.9sen kwh

Remark: under Singapore free market, independent retailer or generation company with higher retailer demand than its own generation capacity are sourcing their energy suppy and shortfall power respectively, through wholesale market to profit the price difference between wholesale price and customer end user retail price. These business allow profit in time wholesale price is lower than retail price, and loss if verse versa.

Posted by chessgame99 > 2023-06-21 07:27 | Report Abuse

@hng33 Your remark on how singapore free market works for electricity is not very accurate. You may wish to read this : https://www.ema.gov.sg/cmsmedia/Handbook/NEMS_111010.pdf

In specific - how CFD hedges wor

Posted by dragon328 > 2023-06-21 08:53 | Report Abuse

@Zhuge_liang, I stand by my earlier projection. The latest temporary price cap will not have much impact, max 1% to 2% adverse impact, on PowerSeraya, though it may have slightly higher impact on Sembcorp.

Posted by Zhuge_Liang > 2023-06-21 09:14 |

Post removed.Why?

Posted by hng33 > 2023-06-21 09:14 | Report Abuse

bought back ytlp at 1.20, resume dual exposure for both YTL and YTLP in portfolio

Posted by shpok4574 > 2023-06-21 09:21 | Report Abuse

Any revised target price report by banker

Posted by sonyx123 > 2023-06-21 09:22 | Report Abuse

the impact would be minimal to the stock. All these fellas panicking...

Posted by dragon328 > 2023-06-21 09:26 | Report Abuse

Based on CIMB latest research report on Sembcorp today, Sembcorp has about 25% exposure to the spot wholesale market, and the projected impact on its net profit will be S$36m or 4.8% to its FY2023 earnings. PowerSeraya exposure to the spot wholesale market has always been lower than 3%, typically less than 1%, so the impact of TPC if any on PowerSeraya will be at worst 1%-2%.

There would be a 8.1% reduction in USEP due to the Temporary Price Cap (TPC) as predicted by the EMA. The latest average USEP has been high at S$400-500/MWh, so a projected 8.1% reduction in USEP will result in USEP dropping to an average of above S$400/MWh, still much higher than the prevailing retails contract prices of below S$300/MWh. So I see no impact on retails contract pricing and Gencos' margin.

Posted by xiaochen > 2023-06-21 09:26 | Report Abuse

目前新加坡政府短暂调整顶价是无可厚非的。这短暂的调整，明显是针对气候的突变，明显是针对气候的突变，明显是针对气候的突变，而不是针对供电商的高净利。换句话说，只要气候正常，一切会打回原形。看到新加坡政府的对策，真的凸显了他们的稳定和成熟。

政府的出手，无非在暗示，4QFY23，新加坡的业务的净利会再次刷新高。再看看今天的马币新币兑换率，3.46。马币没有最弱，只有更弱。

Posted by dompeilee > 2023-06-21 09:33 | Report Abuse

dompeilee

My regret here is that I didn't sell more @ 1.30 on the ex-divvy date...

15 hours ago

SOLD more YTLPowr @ 1.20...better safe than sorry!

Posted by Amazonboy > 2023-06-21 09:44 | Report Abuse

I sold @ 1.30. Went up bcz of pmx statement...unless divvy increase this share is overpriced...Lol

Posted by hng33 > 2023-06-21 09:54 | Report Abuse

dragon328

I view contrary, YTL seraya will record even higher profit forward. The latest cap by Singapore gov is specific target to extreme peak rate, 4500/MWh Capped at the ratio between the prevailing
TPC and Energy Price Cap of $4,500/MWh.

Posted by hng33 > 2023-06-21 09:55 | Report Abuse

The wholesale electricity price rose to S$503/MWh in May from S$325/MWh in April, and even higher by end of June later. These 3 month average wholesale rate in Q2 is almost 60% higher than Q1. Therefore, upcoming YTLP may report exceed RM 1 billion profit compared to Q1 RM 800m.

The following Q once CAP implement will only reduce fraction of wholesale power rate due to demand exceed supply, gov intervene is to to circuit break wholesale power rate from continue climbing up above 3500 MWhr through trigger multiple time cap level at 4500 MWhr (half hour oeak hour rate). Overall, wholesale power rate is well above 400 MWhr forward, above Q1 level, offerring YTL power at least RM 800m in next few quarter

Posted by hng33 > 2023-06-21 09:57 | Report Abuse

Currency factor strengthen further in SGD will top up additional 5% net profit forward

Posted by ValueInvestor888 > 2023-06-21 09:59 | Report Abuse

explosive earning can be expected in coming quarter as UK also turnaround... Both SGD and Pound also strengthen against RM...

Posted by hng33 > 2023-06-21 10:00 | Report Abuse

The factual to singapore energy market is demand exceed supply at peak hour. These condition will NO change only after few year later once new power plant start to supply more energy to market. In the meantime, Singapore energy demand will continue surging due to aggressive gov policy to encourage EV charging station to meet vertical growing in EV vehicle volume

Posted by dragon328 > 2023-06-21 10:03 | Report Abuse

@hng33, haha I do not want to be overly bullish. As long as PowerSeraya can maintain PBT of RM800m a quarter, added with normalised PBT of RM130-180m from Wessex and new income stream from Jordan power, then YTLP is on track to achieve total PBT of RM1.0 billion a quarter, annualised to RM4.0 billion PBT and RM3.0 billion net profit which will be within my earlier projected range of RM3.0b to RM3.6b / year.

Posted by hng33 > 2023-06-21 10:13 | Report Abuse

dragon328
My estimation is based on YTL seraya retail price and wholesale price tag to arrive estimation. In Q1, YTL record RM 800m based on retail price 30sen kwh + wholesale 270Mwh (27sen kwh). Incoming Q2, retail price at 29senkwh + wholesale 450Mwh (45sen kwh). From july onward, gov intend to cap the extreme outlier frequency occasion 4500 Mwhr through circuit breaker to cooling off extreme daily rate to reduce UESP and average monthly wholesale rate, but as long as supply demand imbalance continue, the frequency trigger may cooling off, but wholesale rate should remain well above average 400MWh. Therefore, offering Q1 as YTL year to date lowest floor price RM 800m with upside exceed RM 1 billion if wholesale continue remain above its retail price

Posted by super911 > 2023-06-21 10:13 | Report Abuse

Dragon328,
If YTLPower were to make RM3B-4B a year, that's like RM0.50 per share! At RM1.2, i think is a crazy bargain.

Posted by hng33 > 2023-06-21 10:17 | Report Abuse

Don forget to court in jordan power plant contribution begin June 2023 onwards. Wessex water at least reverse back from loss making to profit, which is huge swing to YTL profit too. Other factos like sgd currency + 5% and pound +8%

Posted by super911 > 2023-06-21 10:50 | Report Abuse

https://klse.i3investor.com/web/pricetarget/research/67833

Posted by hng33 > 2023-06-21 10:50 | Report Abuse

Its funny market response negative to Singapore to End 3,000% Power Price Spikes which is normal for gov to intervene market to cap extreme 3000% hike in profit as hike is not due to input cost gas, but due to imbalance during peak hour power demand. Without these recent 3000% hike, YTL already profit RM 800m, what will 3000% translate into profit ?

In short, Q1 YTL record RM800m is the lowest profit floor level based on its retail price 30senKWh and wholesale price at 27sen KWh. Q2 onward as long as wholesale price above 27senKWh, any surplus is top up to RM 800m floor level as YTL derive both dual profit from both retailer and wholesale

Remark: under normal circumstance, wholesale price should be lower than contract retail price which is main business model for independent retailer and generation company with high retail exposure than its own power capacity to capitalize on price gap different for profit. But, the situation now is reverse, wholesale price is far higher than retail price.

Posted by goody99 > 2023-06-21 10:54 | Report Abuse

analyst report from AmInvest is out. Hopefully people will calm down now

Posted by dragon328 > 2023-06-21 10:57 | Report Abuse

@super911, I forecast net profit of RM3.0-3.6b a year for YTLP, or EPS of 38 sen to 45 sen. Applying a PER of 12x (half of its 2-year average PER of 24x), I am targeting a price range of RM4.50 to RM5.30 in 2 years.

It looks crazy to many now, but lets see the June qtr result before you write it off.

Posted by chessgame99 > 2023-06-21 10:58 | Report Abuse

@Super911 and @Dragon328 I think the proof of the pudding on whether YTLP will make $3-4bn in 1 year is whether they can make >600m next quarter ie end 30 jun but announced in Aug. I am personally hoping that they hit 1bn . If so then Dragon328 analysis is spot on... and all shareholders can start to fly to the moon !

Posted by dragon328 > 2023-06-21 10:59 | Report Abuse

AmResearch stated a 25% exposure to the spot market for PowerSeraya in its latest report, that is incorrect. Such 25% exposure may apply to Sembcorp, not PowerSeraya.

But I do not discount the possibility that PowerSeraya also sold more into the spot wholesale market in the April-June 2023 quarter, taking advantage of the spiking wholesale prices. But it will not be anything like 25%.

Posted by goody99 > 2023-06-21 11:14 | Report Abuse

the impact is small (cap or no cap; how much exposure to the spot market), that's all I need to know. It is not about PowerSeraya alone as there are other catalyst such as green data centre, Wessex after rate hike, higher dividend. Not to mention potential such as more Renewable Energy ventures. This is the most exciting time for YTLP in years!

Posted by chessgame99 > 2023-06-21 11:31 | Report Abuse

@dragon328 I dont know how anyone calculates exposure to spot market. Let me start to explain - The gencos have a contracted position (retail) and then any excess generation - they will sell to the pool. Why will the generator not sell all their excess to the pool ? Because they may not want to cause price separation (ie depress pool prices unnecessary and hence their portfolio pool position will also be reduced. ) and / or the machine availability. YTLP has more units available than Sembcorp but that does not mean they can push everything cos YTLP units are rather old. All the 3 big gencos Tuas , Senoko and YTL have a lot of old units and these unit cannot be used in normal running mode cos they will not be able to compete effectively and get dispatched.

When we analyse YTL pool exposure, we can only see the margins they earn. But that MWH exposure may be very small. Imagine 10MWh earning $4000/MWh margins (ie less fuel cost) and 100MWh earning $400/MWh margins... Both are the same gains.. In reality, pool exposure gains in recent months are likely the former as opposed to the latter. EMA TPC reduces that ability for these gencos to earn this extraordinary profit in the former case.

So ignore calculating this pool exposure and profit. It is like icing on the cake. The main focus should be on the retail margins. ie the contracted positions. Have they been healthy ? If yes, then we will fly to the moon !

Posted by juon > 2023-06-21 11:35 | Report Abuse

it gonna be boring movement from here.... when want to move up, it takes time. when want to go sky diving, within 2 hours can reach the destination.

Posted by super911 > 2023-06-21 11:40 | Report Abuse

Sembcorp after dropping 9% yesterday, it already recovered more than half (up 4.47%) as of now. YTLPower has lesser impact than Sembcorp, so the price recovery can be even greater.

Posted by probability > 2023-06-21 11:48 | Report Abuse

To those who wants to know why the electricity price goes up with demand (independent to fuel price), you may refer "Market clearing process' section 9.2.3

https://www.ema.gov.sg/cmsmedia/Handbook/NEMS_111010.pdf

By the way its been confirmed that current quarter electricity price shot up by more than 50% while the trailing 2.5 months natural gas price had dropped by more than 50% (compared to first quarter ending Mar 23'). YTL powerseraya had bought the fuel in advanced when it was cheap in large quantity.

https://www.ema.gov.sg/cmsmedia/Publications_and_Statistics/Statistics/35RSU.pdf

Q2 results is possible to have double the Q1 EPS. Hng33 is correct.

Posted by ValueInvestor888 > 2023-06-21 11:54 | Report Abuse

For sure, YTLP can make more than RM 2b this year. IF PE 10, will give them mkt cap of RM 20b. Current mkt cap is less than RM 10b. This stock has potential to achieve 100% return in next few months.

Posted by probability > 2023-06-21 12:02 | Report Abuse

unless demand goes down or new capacity comes up, its simply not possible for the profit to come down if you see the "Market clearing process' section 9.2.3

the demand will only go up in singapore coupled with this short term El Nino effect....

Posted by ValueInvestor888 > 2023-06-21 12:04 | Report Abuse

Once they achieve mkt cap of RM 1.5b, potential entry to MSCI. More funds will buy...

Posted by Invest_888 > 2023-06-21 12:28 | Report Abuse

YTLP deserves better price.

Posted by chessgame99 > 2023-06-21 12:56 | Report Abuse

i view that the price drop on sembcorp is not right. they are so big a company across so many countries and not just in utilities but development of land as well. to have a 9% drop just because of a news that has uncertain impact.. and moreover temporary measure.. ayioh , shows that many investors really dont understand the business and just dump based on price action

Posted by cgtan2020 > 2023-06-21 15:00 | Report Abuse

Date Period Demand
(MW) Solar
(MW) TCL
(MW) USEP
($/MWh) EHEUR
($/MWh) LCP
($/MWh)
21 Jun 2023 00:00-00:30 6173.331 - 0.000 230.93 -1.13 0.00
21 Jun 2023 00:30-01:00 6045.602 - 0.000 161.35 -0.78 0.00
21 Jun 2023 01:00-01:30 5993.040 - 0.000 143.35 -0.69 0.00
21 Jun 2023 01:30-02:00 5936.347 - 0.000 138.54 -0.66 0.00
21 Jun 2023 02:00-02:30 5891.796 - 0.000 142.87 -0.67 0.00
21 Jun 2023 02:30-03:00 5847.608 - 0.000 121.90 -0.55 0.00
21 Jun 2023 03:00-03:30 5797.833 - 0.000 117.66 -0.51 0.00
21 Jun 2023 03:30-04:00 5766.969 - 0.000 109.59 -0.48 0.00
21 Jun 2023 04:00-04:30 5759.256 - 0.000 106.37 -0.46 0.00
21 Jun 2023 04:30-05:00 5784.215 - 0.000 117.60 -0.52 0.00
21 Jun 2023 05:00-05:30 5838.214 - 0.000 117.78 -0.53 0.00
21 Jun 2023 05:30-06:00 5959.457 - 0.000 142.46 -0.65 0.00
21 Jun 2023 06:00-06:30 6132.717 - 0.000 143.50 -0.68 0.00
21 Jun 2023 06:30-07:00 6325.408 - 0.000 172.46 -0.83 0.00
21 Jun 2023 07:00-07:30 6506.987 - 0.000 205.79 -1.00 0.00
21 Jun 2023 07:30-08:00 6723.764 - 0.000 306.90 -1.49 0.00
21 Jun 2023 08:00-08:30 6911.322 - 0.000 343.39 -1.72 0.00
21 Jun 2023 08:30-09:00 7034.563 - 0.000 353.62 -1.79 0.00
21 Jun 2023 09:00-09:30 7091.380 - 0.000 281.65 -1.38 0.00
21 Jun 2023 09:30-10:00 7113.775 - 0.000 281.74 -1.43 0.00
21 Jun 2023 10:00-10:30 7096.474 - 0.000 280.74 -1.41 0.00
21 Jun 2023 10:30-11:00 7070.834 - 0.000 241.54 -1.19 0.00
21 Jun 2023 11:00-11:30 7022.809 - 0.000 172.62 -0.85 0.00
21 Jun 2023 11:30-12:00 7007.675 - 0.000 172.49 -0.85 0.00
21 Jun 2023 12:00-12:30 6968.397 - 0.000 168.86 -0.82 0.00
21 Jun 2023 12:30-13:00 6977.979 - 0.000 168.84 -0.81 0.00
21 Jun 2023 13:00-13:30 7033.827 - 0.000 168.57 -0.84 0.00
21 Jun 2023 13:30-14:00 7084.278 - 0.000 168.89 -0.84 0.00
21 Jun 2023 14:00-14:30 7092.215 - 0.000 170.51 -0.83 0.00
21 Jun 2023 14:30-15:00 7060.690 - 0.000 170.48 -0.87 0.00
21 Jun 2023 15:00-15:30 7064.109 - 0.000 172.52 -0.87 0.00
21 Jun 2023 15:30-16:00 7106.146 - 0.000 292.39 -1.47 0.00
21 Jun 2023 16:00-16:30 7155.632 - 0.000 332.47 -1.68 0.00
21 Jun 2023 16:30-17:00 7200.188 - 0.000 343.14 -1.72 0.00
21 Jun 2023 17:00-17:30 7180.721 - 0.000 335.21 -1.68 0.00
21 Jun 2023 17:30-18:00 7094.049 - 0.000 302.57 -1.54 0.00
21 Jun 2023 18:00-18:30 7025.627 - 0.000 239.19 -1.22 0.00
21 Jun 2023 18:30-19:00 7012.089 - 0.000 251.78 -1.29 0.00
21 Jun 2023 19:00-19:30 7017.918 - 0.000 281.81 -1.44 0.00
21 Jun 2023 19:30-20:00 7013.167 - 0.000 281.84 -1.46 0.00
21 Jun 2023 20:00-20:30 6991.791 - 0.000 271.83 -1.41 0.00
21 Jun 2023 20:30-21:00 6956.509 - 0.000 223.21 -1.16 0.00
21 Jun 2023 21:00-21:30 6900.348 - 0.000 281.83 -1.46 0.00
21 Jun 2023 21:30-22:00 6792.996 - 0.000 172.98 -0.88 0.00
21 Jun 2023 22:00-22:30 6670.237 - 0.000 172.58 -0.87 0.00
21 Jun 2023 22:30-23:00 6557.418 - 0.000 168.88 -0.84 0.00
21 Jun 2023 23:00-23:30 6438.138 - 0.000 170.22 -0.85 0.00
21 Jun 2023 23:30-00:00 6275.122 - 0.000 168.54 -0.83 0.00

Posted by hng33 > 2023-06-21 15:11 | Report Abuse

Singapore energy demand will continue surging due to aggressive gov policy to encourage EV charging station to meet vertical growing in EV vehicle volume.

YTL seraya is task to built 1700 EV charging station to meet growing number of EV in singapore. These new power demand for EV is new market to develop by YTL retailer at expense to petrol station.

Posted by dragon328 > 2023-06-21 15:45 | Report Abuse

@cgtan2020, thanks for the EMA determination papers. I have taken a look and found nothing new that this forum has not discussed on.

It is interesting to read the comments and feedback provided by Gencos in response to this proposed TPC. In particular, PowerSeraya said that "We are of the view that in the long run, free market forces generally provide a more efficient and stable environment for the operation of wholesale electricity markets than with government intervention."TPC should not be a permanent feature of the Singapore Wholesale Electricity Market. It should be a temporary measure for a period 12 months"

Pacific Light commented: "We would like to highlight to the EMA that scarcity pricing is one of the key market mechanisms embedded in the energy-only market. It should be noted that (i) Gencos rely on it to recover losses or missing money incurred during downcycles which could last for years, and (ii) investors rely on it to gauge the need to build new generation planting moving forward."

The EMA should really take into considerations such feedback before trying to intervene the wholesale market too much.