Platts: Continental European Day-Ahead Power Prices Fell 6.7% in December

  Platts: Continental European Day-Ahead Power Prices Fell 6.7% in December

But Natural Gas Prices in Europe & U.K. Up Versus November and Year Over Year

PR Newswire

LONDON, Jan. 9, 2013

LONDON, Jan.9, 2013 /PRNewswire/ --Continental Europe's day-ahead power
prices fell in December, while day-ahead natural gas prices edged higher,
according to Platts, a leading global provider of energy, petrochemicals and
metals information. But in the United Kingdom, power and natural gas prices
moved in the same direction last month, higher versus November and up versus
December 2011.

The average cost of day-ahead power in Continental Europe was €47.78 per
megawatt hour (/MWh) in December 2012, as indicated by the Platts Conti
Index*. This is down 6.7% from the November average of €51.20/MWh and up
slightly from December 2011 average of €47.37/MWh.

"Seasonally, power prices often decline in December when there is less
commercial and industry demand due to holiday-shortened schedules," said Anna
Crowley, Platts European power editor. "The December price drop was
accentuated by above-average temperatures, healthy renewable generation and no
signs of underlying demand recovery."

While European power prices declined in December from November, U.K. day-ahead
power prices increased. The latest monthly price assessments from Platts show
that U.K. day-ahead power prices averaged 49.85 British pounds per megawatt
hour (GBP/MWh) in December. This is up 2.3% from November's average and up
14.7% from the December 2011 average of 43.45 GBP/MWh.

"The U.K. saw record oil-fired power generation on December 12, when output
from oil plants crossed the one gigawatt mark for the first time since
December 2010," said Crowley. "This forced the price of within-day power to
trade at levels in excess of 250 GBP/MWh."

In terms of natural gas, December prices were higher in Europe and the U.K.
The latest monthly price assessments from Platts show the average cost of
day-ahead natural gas at Continental Europe's most liquid hub, the Dutch TTF,
was €27.32/MWh in December. That was up 0.26% from November's €27.25/MWh and
up more than 22% from the December 2011 average of €22.31/MWh.

Platts' price assessments show that day-ahead gas prices in the U.K. rose from
November to December and were up 10 pence/therm, or nearly 18%, versus
December 2011.

"A cold snap early in December briefly supported short-term gas prices," said
Crowley, "but the year-over-year price increase largely reflected oil price
movements and the fact that oil indexation remained a key aspect of European
gas contracts."

Platts Continental Europe and U.K. Day-Ahead Monthly Averages
                           Dec-12     Nov-12    Dec-11
CONTI (Euro/MWh)           47.78      51.20     47.37
TTF (Euro/MWh)             27.32      27.25     22.31
U.K. Power (GBP/MWh)       49.85      48.73     43.45
U.K. Gas (pence/therm)     65.92      65.63     55.92
Source: Platts

NOTE: All figures are monthly averages of daily day-ahead contract prices as
assessed byPlatts.

*Platts Continental Power (CONTI) Index is a demand-weighted baseload average
of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and
the Netherlands. The Platts U.K. assessments reflect day-ahead contracts
assessed for firm delivery of power on the high voltage network of England,
Wales and Scotland, and at the National Balancing Point for gas. The Platts
assessments reflect prices as determined between buyer and seller in the open
physical markets.

For more information on electric power or the methodology used by Platts in
its power assessments, visit the Platts website

About Platts: Founded in 1909, Platts is a leading global provider of energy,
petrochemicals and metals information and a premier source of benchmark prices
for the physical and futures markets. Platts' news, pricing, analytics,
commentary and conferences help customers make better-informed trading and
business decisions and help the markets operate with greater transparency and
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of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear
power, petrochemical, and shipping markets. A division of The McGraw-Hill
Companies (NYSE: MHP), Platts is headquartered in New York with approximately
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