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Record Carbon Plunge Means Pain for Europe’s Utilities: Energy

European utilities, which have lost investors money for the past three years, can expect nothing but more pain after the European Parliament rejected a proposal to support prices in the world’s largest carbon-credit market.

Germany’s EON SE, GDF Suez SA of France and CEZ AS from the Czech Republic are among power suppliers whose earnings will drop because a majority of their energy comes from wind, natural gas and uranium, meaning they will be undercut by coal-fired plants, JPMorgan Chase & Co. said. Burning coal benefits most from cheaper carbon permits because the fuel emits about twice as much carbon dioxide as natural gas.