Platts: Continental European Day-Ahead Power Prices Rose 10% in January

   Platts: Continental European Day-Ahead Power Prices Rose 10% in January

Natural Gas Prices Fell 3% in Europe and Edged Higher in the U.K.

PR Newswire

LONDON, Feb. 5, 2013

LONDON, Feb. 5, 2013 /PRNewswire/ --Day-ahead power prices in Continental
Europe rose 10% in January, driven by cold winter temperatures and increased
demand, according to Platts, a leading global provider of energy,
petrochemicals and metals information.

The average cost of day-ahead power in Continental Europe was €52.52 per
megawatt hour (/MWh) in January 2013, as indicated by the Platts Conti Index*.
This is up from the December 2012 average of €47.78/MWh and up 13.1% from
January a year ago when the average was €46.43/MWh.

"The colder, calmer weather conditions in Germany during the middle of January
prompted a decline in wind power output just as demand was picking up," said
Henry Edwardes-Evans, Platts European power editor. "The greatest increase in
day-ahead power prices last month occurred in France, where a high proportion
of domestic heat systems are electric."

In the United Kingdom, the January day-ahead power prices were less volatile,
up only 1% versus December. Prices remained stable on the back of adequate
supply from nuclear and gas-fired power stations and record-high wind energy
levels.

However, on a year-over-year basis, U.K. day-ahead power prices were sharply
higher last month at £50.49/MWh, up 21% from the January 2012 average of
£41.84/MWh. The rise was attributed in large part to the 23% increase in U.K.
natural gas prices, as both short- and long-term U.K. power price movements
tend to follow the natural gas market.

While natural gas prices have also risen on the Continent, the impact on power
prices has been less. 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 €26.55/MWh in January. That was down 3% from the
December average of €27.32/MWh, but 21% higher than the January 2012 average
of €21.94/MWh.

"While natural gas has a strong influence on power prices in the U.K., the
Netherlands and Italy, it is much less influential in Germany, France and the
Nordic countries, where coal, nuclear, hydro and wind are more dominant
sources of electricity," said Edwardes-Evans. "Sources say these divergent
power price trends are clear indication of the need for greater
interconnection between the markets, to allow the broad variety of generation
sources to balance each other out."

Platts Continental Europe and U.K. Day-Ahead Monthly Averages
                           Jan-13     Dec-12    Jan-12
CONTI (Euro/MWh)           52.52      47.78     47.37
TTF (Euro/MWh)             26.55      27.32     21.94
U.K. Power (GBP/MWh)       50.49      49.85     41.84
U.K. Gas (pence/therm)     66.83      65.92     54.45
Source: Platts

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

*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 www.platts.com.

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,
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of the carbon emissions, coal, electricity, oil, natural gas, metals, nuclear
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Companies (NYSE: MHP), Platts is headquartered in New York with approximately
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available at http://www.platts.com.

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SOURCE Platts

Website: http://www.platts.com
Contact: Kathleen Tanzy, +1-212-904-2860 Kathleen_tanzy@platts.com; or
Elizabeth Catalano, +44-207-176-6024
 
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