Nordic February Power Extends Losses After Spot Price Drops

Nordic electricity for next month fell to a record after the price for power delivered tomorrow was lower in an auction for physical delivery than in open trading of financial futures.

The February contract dropped as much as 3 percent to a record 40.10 euros ($52.98) a megawatt-hour on Nasdaq OMX Group Inc.’s energy exchange in Oslo, and traded at 40.40 euros a megawatt-hour as of 2:21 p.m. Power for delivery next quarter declined as much as 2.6 percent to a 35.25 euros, before trading at 35.40 euros, the lowest since Jan. 2.

Electricity for delivery around the clock tomorrow will cost 37.50 euros a megawatt-hour on average, following today’s auction on the Nord Pool Spot AS exchange in Oslo. That’s down 26 percent from yesterday’s price for today and lower than the financial contract for tomorrow on Nasdaq OMX, which closed in a bid-ask spread of 38 euros to 38.75 euros. Forward contracts frequently track movements in prompt prices.

Low temperatures in Stockholm may rise to 1 degree Celsius (34 Fahrenheit) on Jan. 29, from minus 19 today, according to CustomWeather Inc. data on Bloomberg. Higher temperatures damp demand for electric heating.

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