Nordic electricity for next quarter fell with German power and carbon permits, after a European Union committee postponed a decision to allow its chairman to start talks on a plan to tackle a surplus of allowances.
The benchmark next-quarter contract lost 1.8 percent to 35.71 euros ($47.61) a megawatt-hour and traded at 35.80 euros as of 11:51 a.m. on Nasdaq OMX Group Inc.’s energy exchange in Oslo. The March contract declined 1.3 percent to 37.50.
EU carbon permits for December traded 13 percent lower at 4.41 euros a metric ton after falling as much as 20 percent to 4.09 euros on the ICE Futures Europe exchange in London. Emission prices can influence generation costs at coal-and gas- fed plants. German power for baseload delivery next quarter retreated as much as 1.5 percent to 37.20 euros a megawatt-hour, broker data compiled by Bloomberg show.
The European Parliament’s environment committee approved measures to tackle a glut of carbon permits in a vote today, as proposed by the EU Commission. It also postponed for about a week a decision on whether to authorize negotiations with governments in a bid to fast-track an agreement on amending the bloc’s emissions trading directive, to reaffirm the regulator’s right to alter a supply schedule to prop up carbon prices.
“Everybody’s just waiting for input from the carbon market, and I don’t expect anything major to happen with Nordic power prices today,” Martin Paergaard, a trader at Energi Midt Handel A/S, said today by phone from Silkeborg, Denmark. “Prices may remain low for a few weeks, but will probably rise next month, as a result of the hydrological deficit.”
The Nordic region gets more than half of power use from hydroelectric plants. The amount of water and snow available to generate electricity in the region may be 16.1 terawatt-hours below normal for the time of year in two weeks, down from 14.6 terawatt-hours today, Markedskraft AS data on Bloomberg show.
The April-June contract has gained 1.7 percent since Jan. 31 and 2.5 percent since Dec. 18, broker data show.
“The contract’s medium-term rising trend is intact, with a support level of 35 euros and a resistance level of 37 euros,” Martin Lagerholm, a market analyst at Sweco Energuide AB, said yesterday in an e-mailed research note.
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