German 2014 Power Declines as European Coal, Carbon Prices Fall

Power for 2014 in Germany, Europe’s biggest economy, fell as coal dropped to a record and emissions allowances declined.

Baseload German 2014 electricity, for supplies delivered around the clock, slipped 0.9 percent taking its weekly loss to 1.6 percent. That’s the first weekly decline since Jan. 25, according to broker data compiled by Bloomberg.

The benchmark power contract declined 40 cents to 42 euros ($54.92) a megawatt-hour at 5:07 p.m. Berlin time, according to broker data compiled by Bloomberg. European 2014 coal for delivery to Amsterdam-Rotterdam-Antwerp fell 1.1 percent to $97.10 a metric ton, the lowest since the contract started trading in January 2010.

“Coal prices are one of the main drivers for German power prices,” Roland Vetter, head of research at hedge fund investor CF Partners U.K. LLP said in an interview in London today. “There is less U.S. demand and the surplus is coming into the international market.”

EU carbon permits fell as much as 4.1 percent to 4.70 euros a ton on the ICE Futures Europe exchange in London before trading at 4.71 euros. Power can track emissions and coal, which affect production costs.

Jefferies Group Inc. cut its price forecast for European Union 2013 carbon permits by 13 percent as the bloc seeks a solution to an excess of the allowances that forced prices to a record low last month. The contract will average 5 euros ($6.49) a metric ton through December, Matthew Gray, a London-based analyst, wrote in an e-mailed note.

April power in Germany fell 0.3 percent, or 10 euro cents, to 38.50 euros a megawatt-hour, while the equivalent French contract was unchanged at 43.25 euros, broker data show.

EON SE delayed the start of its 757-megawatt Wilhelmshaven coal-fed plant until tomorrow. The plant halted on Feb. 26 for “corrective maintenance,” the company said on its website.

Electricite de France SA had unplanned halts at its 1,330-megawatt Paluel-4 and 915-megawatt Tricastin-1 nuclear power plants, French grid operator RTE said on its website.