German Power Slips as Carbon Declines From Two-Month High

German power for 2013 slipped as European Union carbon permits declined from their highest level in two months.

German next-year baseload electricity, for supplies delivered around the clock, declined 0.2 percent to 47.09 euros ($60.50) a megawatt-hour, according to broker data compiled by Bloomberg at 10 a.m. Berlin time.

Carbon for December dropped 1 percent to 8.27 euros a metric ton on the ICE Futures Europe exchange. Electricity in Europe’s largest economy can track emissions prices, which affect production costs at plants that burn fossil fuels.

Carbon call options trading surged yesterday, according to data from ICE, where brokered contracts are cleared. There were 2.75 million tons of options to buy December EU carbon at prices as high as 14 euros a ton. There were 500,000 tons traded the previous day. Yesterday’s options to sell amounted to 1 million tons, the data show.

To contact the reporter on this story: Mathew Carr in London at m.carr@bloomberg.net

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

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