Nordic Power for Next Week Retreats on Milder Temperatures
Nordic electricity for delivery next week fell after forecasts for milder temperatures pointed to lower heating demand.
Baseload power, for delivery around the clock, declined as much as 4.9 percent to 40.05 euros ($54.43) a megawatt-hour, a record for the contract, and traded at 41 euros as of 3:49 p.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo.
Low temperatures in Stockholm may rise to zero degrees Celsius (32 Fahrenheit) on Feb. 6 from minus 3 today, according to CustomWeather Inc. data on Bloomberg. Milder weather damps demand for electric heating in the region, which meets more than half its power needs by running water through turbines.
EU carbon permits for December erased earlier losses, rising 2.5 percent to 4.49 euros a metric ton on the ICE Futures Europe exchange in London. Carbon prices can influence generating costs at coal and gas-fed plants.
The benchmark near-quarter electricity contract gained 1.1 percent to 35.95 euros a megawatt-hour after losing 7 percent since Jan. 16 on Nasdaq OMX.
“We think there is a good chance of the near-quarter power price climbing further upward after the recent losses,” Swedish bank SEB AB said today in an e-mailed statement.
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