Power for February delivery in Germany dropped after rising to a record yesterday amid forecasts for colder weather. The equivalent French contract fell for the first time in four days.
Baseload German next-month electricity, for supplies delivered around the clock, lost 0.9 percent to 50.65 euros ($66.23) a megawatt-hour as of 4:20 p.m. Berlin time. The French February contract, which yesterday rose as high as 60 euros, the most since Dec. 6, slipped 1.2 percent to 58.80 euros a megawatt-hour.
Prices surged yesterday on forecasts for freezing weather. Low temperatures in Frankfurt are forecast to drop to minus 10 degrees Celsius (14 Fahrenheit) on Jan. 22, from 3 degrees today, according to CustomWeather Inc. data on Bloomberg. The German February contract, which gained as much as 3.2 percent yesterday to a record 51.85 euros, is unlikely to rise above 51.50 euros in the near future, said Frank Woskowski, a power trader at AVU Aktiengesellschaft fuer Versorgungs-Unternehmen.
“The contract failed to rise above this level on Dec. 4 and Nov. 15 and should be capped here for now,” Woskowski said by phone from Gevelsberg, Germany.
German power for delivery in 2014, a European benchmark, fell to a record at 44.95 euros a megawatt-hour, the lowest since Bloomberg started tracking the contract Jan. 28, 2010.