Bloomberg News

German Power for 2013 Falls to Record as European Coal Declines

December 20, 2012

German electricity for 2013 delivery, a benchmark contract in Europe, dropped to a record as European coal prices fell for the first time in six days.

Baseload 2013 power, for supplies delivered around the clock, lost 0.6 percent while European next-year coal declined as much as 1.1 percent. Power can track fuel and emissions prices, which affect the cost of production at plants that burn fossil fuels.

The German power contract dropped 25 cents to 45.10 euros ($59.70) a megawatt-hour and was at 45.15 euros at 5:05 p.m. Berlin time, according to broker data compiled by Bloomberg. Coal for 2013 delivery to Amsterdam-Rotterdam-Antwerp fell 1.05 euros to $95.55 a metric ton.

Price movements should be “relatively event-less” for the rest of December, Societe Generale SA (GLE) said in an e-mailed note yesterday. “Weak fundamentals have largely been priced-in across the spectrum of commodities,” the bank said.

The German 2013 clean-dark spread, a measure of the profit utilities get from selling electricity after accounting for the cost of coal and emissions permits, widened 0.4 percent to 9.54 euros a megawatt-hour, according to data compiled by Bloomberg.

Next-day power prices in Germany fell 8 percent to 42 euros a megawatt-hour, broker data show. Wind output in Germany is predicted to peak at about about 10 gigawatts tomorrow, Meteologica SA, a Madrid-based weather forecaster, said on its website. That’s more than an average level of 5 gigawatts, according to data from Leipzig, Germany-based European Energy Exchange AG on Bloomberg.

German wind production will decrease on Dec. 22 and Dec. 23 before recovering the next day, Societe Generale said.

In France, electricity for delivery next week fell to a record. The baseload contract dropped for an 11th day, sliding as much as 16 percent to 21 euros a megawatt-hour, the lowest since Bloomberg began tracking data in 2007. Peakload power for delivery from 8 a.m. to 8 p.m. declined as much as 13 percent to a record 25 euros a megawatt-hour, broker data show.

To contact the reporters on this story: Rachel Morison in London at rmorison@bloomberg.net; Julia Mengewein in Frankfurt at jmengewein@bloomberg.net

To contact the editor responsible for this story: Lars Paulsson at lpaulsson@bloomberg.net


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