German-French Power Spread Soars Ahead of Winter Season
- French price premium for next month rises above 40 euros
- Higher power demand for heating and less wind boost premium
This article is for subscribers only.
Traders betting that cooler weather will boost electricity demand for heating have driven a key spread between power prices in France and Germany to the widest levels in five years.
Wholesale electricity in France for delivery next month climbed to a premium of more than 40 euros a megawatt-hour above a similar contract for Germany on Monday, according to European Energy Exchange AG prices. That’s more than triple the 10-year seasonal average, broker data show. The spread widened to as much as 47 euros last week.