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By Mathew Carr
Nov. 15 (Bloomberg) -- European Union carbon allowances
advanced to a two-week high as German power and natural gas
EU permits for December gained 1.4 percent to 15.11 euros
($20.57) a metric ton on London's ICE Futures Europe exchange,
which would be the highest close since Oct. 25. They rose for a
fifth day.
Regulators said Nov. 12 sales for the post-2012 period of
the program are not likely to start in 2011 as further work is
needed on auction infrastructure.
Because of the lower supply of permits next year, carbon
prices probably need to rise to lure more utilities away from
coal burning and to encourage factories with spare allowances to
sell into the market, said Trevor Sikorski, an analyst in London
for Barclays Capital, the investment bank. "It is a recipe to
be bullish," Sikorski said today in an e-mailed research
German power for next year climbed as much as 1.5 percent
to 49.40 euros a megawatt-hour, the highest price since Oct. 7, according to broker data compiled by Bloomberg. U.K. gas for the
six months through September next year increased 2.3 percent.

For Related News and Information:
Top Power Stories: PTOP <GO>
Emissions-trading stories: NI ENVMARKET BN <GO>
Today's top energy news: ETOP <GO>
European power-markets home page: EPWR <GO>

--Editors: Alex Devine, Mike Anderson.

To contact the reporter on this story:
Mathew Carr in London at +44-20-7073-3531 or

To contact the editor responsible for this story:
Stephen Voss on +44-20-7073-3520 or sev@bloomberg.net