German Next-Year Power, European Coal Stable Near Two-Year Lows

German power and European coal for next year were little changed near their two-year lows. Profits from coal-fed power plants rose.

Baseload 2013 German power, for supplies delivered around the clock, rose 0.1 percent as coal for delivery in Amsterdam- Rotterdam-Antwerp next year declined 0.2 percent, according to broker data compiled by Bloomberg.

The 2013 power contract, a European benchmark, rose 5 cents to 47.05 euros ($61.15) a megawatt-hour, broker data show. The contract fell to 46.90 euros yesterday, the lowest price for a year-ahead contract since November 2010. The equivalent coal contract lost 15 cents to $93.20, the least since May 2010.

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 measure of the profit utilities get from selling electricity after accounting for the cost of coal and emissions permits, climbed as much as 2 percent to 10.92 euros a megawatt-hour, according to data compiled by Bloomberg.

Day-ahead power added 8.6 percent to 45.35 euros while the month-ahead contract halted six days of losses, rising 0.6 percent to 47.60 euros, broker data show.

Above-average temperatures are forecast for tomorrow as the high temperature in Frankfurt is predicted at 17 degrees Celsius (63 Fahrenheit) tomorrow, compared with a five-year average of 15 degrees, according to CustomWeather Inc. data on Bloomberg. High temperatures will rise to 20 degrees Celsius on Oct. 19 and to 22 degrees Celsius on Oct. 20.

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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