Nordic Next-Quarter Power Declines After Spot Price FallsTorsten Fagerholm
Nordic electricity for April through June fell to a three-week low after the price for power delivered tomorrow was lower in an auction for physical delivery than in open trading of financial futures.
The benchmark quarterly contract dropped as much as 3 percent to 35.75 euros ($47.67) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, the lowest since Jan. 2, and traded at 36 euros a megawatt-hour as of 1:40 p.m. Power for delivery in 2014 declined as much as 2.2 percent to a record 35.85 euros before trading at 36.10 euros.
Electricity for delivery around the clock tomorrow will cost 50.87 euros a megawatt-hour on average, following today’s auction on the Nord Pool Spot AS exchange in Oslo. That’s down by 9 percent from yesterday’s price for today and lower than the financial contract for tomorrow on Nasdaq OMX, which closed at 52.25 euros. Forward contracts frequently track movements in prompt prices.
Low temperatures in Oslo may rise to 1 degree Celsius (34 Fahrenheit) on Jan. 30, from minus 11 a day earlier, according to CustomWeather Inc. data on Bloomberg. Higher temperatures damp demand for electric heating.