German 2013 Power Declines as European Coal, Carbon Permits Fall

German power for 2013 delivery dropped as the price of European coal and emissions permits fell.

Baseload next-year electricity, for supplies around the clock, slid 0.6 percent as carbon declined as much as 1.4 percent and European coal 0.5 percent.

Year-ahead power lost 30 cents to 47.75 euros ($61.97) a megawatt-hour at 10:42 a.m. Berlin time, according to broker prices compiled by Bloomberg. Next-year electricity has traded in a range from 47.30 to 48.23 euros since Sept. 18.

Carbon for December delivery slid as much as 11 cents to 7.70 euros a metric ton on the ICE Futures Europe exchange while next-year coal for delivery into Amsterdam-Rotterdam-Antwerp has lost 45 cents to $96.75 a ton, broker data show.

Power can track fuel and emissions prices, which affect the cost of production at plants which burn the fossil fuel.

The German 2013 clean-dark spread, a calculation of the profit utilities get from selling electricity after accounting for the cost of coal and emissions permits, declined 2.4 percent today to 10.43 euros a megawatt-hour at 10:42 a.m., data compiled by Bloomberg show.

Power for next month fell 1.7 percent to 49.65 euros and the day-ahead contract fell 11.5 percent to 45.50 euros a megawatt-hour, broker data show.

The minimum temperature in Frankfurt is predicted to drop to 1 degree Celsius (34 Fahrenheit) tomorrow, compared with a five-year average of 11 degrees, according to CustomWeather Inc. data on Bloomberg.

To contact the reporter on this story: Rachel Morison in London at rmorison@bloomberg.net

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

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