Power Premium Falls as France, Germany Converge: Energy Markets
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The extra cost to buy French electricity compared with Germany’s is shrinking as the European Union moves toward a single power market for the continent.
French electricity for delivery next year traded at as little as 1.30 euros ($1.73) a megawatt-hour more than the equivalent German contract yesterday, the smallest difference since February, according to data compiled by Bloomberg based on broker prices. That compares with this year’s high of almost 4 euros on May 17 and an average of 2.50 euros during 2010. The spread traded today at 1.90 euros.