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European Power for 2014 Drops to Record With Coal, Emissions

European power for delivery in 2014 slid to a record as prices for emissions and coal tumbled.

Baseload 2014 German electricity, for supplies delivered around the clock, lost as much as 1.2 percent, according to broker data compiled by Bloomberg. In France, baseload power for delivery in 2014 declined as much as 0.8 percent.

German power for 2014 delivery lost as much as 50 cents to 42.55 euros ($56.54) a megawatt-hour, the lowest since Bloomberg started tracking the contract in January 2010. It traded at 42.70 euros at 5:27 p.m. Berlin-time. In France, baseload power for next year lost 35 cents to a record 45.70 euros.

European Union carbon permits plunged after low bids at an auction by Germany forced the sale’s cancellation. December permits dropped as much as 10 percent to a record 5.05 euros a metric ton on the ICE Futures Europe exchange in London.

Coal for delivery in 2014 to Amsterdam, Rotterdam or Antwerp slid 1.3 percent to $99 a metric ton, also a record low. Power can track fuel and emissions prices, which affect the cost of production at plants that burn fossil fuels.

“Forward-year power prices in coal driven markets are currently facing an almost perfect storm: falling coal prices, carbon hitting record lows on almost a daily basis,” Per Lekander, a Paris-based analyst at UBS AG (UBSN), said in an e-mailed research note. Power prices may fall further as “the carbon price is likely to continue its trend toward almost zero.”

To contact the reporter on this story: Julia Mengewein in Frankfurt at jmengewein@bloomberg.net

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

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