European Power for Next Year Drops on ‘Chronically Weak’ Demand
Baseload German power, for supplies delivered around the clock, fell as much as 0.4 percent while the equivalent French contract lost as much as 0.2 percent.
Electricity for 2013 in Germany, a European benchmark, dropped as much as 20 cents to 45.25 euros ($59.92) a megawatt- hour and was trading at 45.35 euros at 5:23 p.m. Berlin time, according to broker data compiled by Bloomberg. French 2013 power slid 10 cents to 47.40 euros.
German 2013 power has lost 15 percent since the start of the year while the French contract has slid 5.8 percent, broker data show.
“Consumption numbers for the year confirm there will be no additional demand for electricity versus 2011,” Paolo Coghe, a Paris-based analyst for the bank, said today in an e-mailed report. “2012 has had colder weather than 2011 which has helped mask existing weakness in power demand.”
The 2013 German contract expires on Dec. 21 on the European Energy Exchange AG, Europe’s biggest power exchange.
“Most people are just waiting for the end of the year,” Min-Soo Park, a power trader at MVV Trading GmbH, said by telephone from Mannheim, Germany. “It seems there is nothing like a cold spell coming up.”
Day-ahead power fell 15 percent to 45.70 euros a megawatt- hour while electricity for January was little changed at 47.65 euros, broker data show.
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