eek "For the Nordic region and for the continental region, we
do not see that demand will tick up fast, so we believe in
relatively soft prices for the future," Vattenfall Chief
Executive Officer Oeystein Loeseth said on a conference call
yesterday. "I'm talking long term, 2015 and even until 2020."
The oversupply in Europe's power market will "worsen"...
+------------------------------------------------------------------------------+
German Next-Year Power Falls to Six-Month Low as Gas Slides
2010-10-29 10:49:47.604 GMT
By Lars Paulsson
Oct. 29 (Bloomberg) -- German electricity for delivery next
year fell to its lowest level in more than six months as
natural-gas prices declined and Vattenfall AB said prices would
remain "soft" until 2015.
Baseload power for 2011 in Europe's biggest electricity
market slid 15 cents, or 0.3 percent, to 47.55 euros ($65.94) a
megawatt-hour at 12:33 p.m. Berlin time. That's the lowest price
since April 13. Baseload is delivered around the clock.
The benchmark contract has slid as the price of natural gas
declined and as Europe's biggest market became oversupplied.
Vattenfall, the Nordic region's biggest utility, expects prices
to remain low until 2015 in Germany and 2020 in Scandinavia.
"For the Nordic region and for the continental region, we
do not see that demand will tick up fast, so we believe in
relatively soft prices for the future," Vattenfall Chief
Executive Officer Oeystein Loeseth said on a conference call
yesterday. "I'm talking long term, 2015 and even until 2020."
The oversupply in Europe's power market will "worsen"
until at least 2013 as utilities and producers add capacity
based on investment decisions taken at the top of the energy
price rally two and three years ago, UBS AG said on Oct. 14.
German 2011 power has lost 7.9 percent since the start of
the year and 4.6 percent this month.
The contract tracked natural-gas costs, a fuel used for
about 15 percent of power generation in Germany. U.K. gas for
delivery from April through September next year slid 13 percent
since July 5 to trade at 46.75 pence a therm today. The U.K. is
Europe's biggest market for the fuel, and gas prices there
affect those on the continent.
Natural-gas demand in the developed economies, sapped by
the global recession, won't return to 2008 levels for two years,
the International Energy Agency said in June.
Bloomberg tracks power prices from brokers including GFI
Group Inc., ICAP Plc and Spectron Group Ltd.
For Related News and Information:
European gas-market stories TNI EUROPE GASMARKET <GO>
Today's top gas news GTOP <GO> and energy news ETOP <GO>
European Energy Brokers Page NRGB <GO>
--Editors: John Buckley, Jonas Bergman
To contact the reporter on this story:
Lars Paulsson in London at +44-207-673-2759 or
lpaulsson@bloomberg.net
To contact the editor responsible for this story:
Stephen Voss at +44-20-7073-3520 or sev@bloomberg.net
