By Mathew Carr
Nov. 3 (Bloomberg) -- European Union carbon-dioxide
allowances advanced to a three-day high as U.K. natural gas for
summer rose, potentially making the cleaner-burning fuel less
profitable for power utilities.
EU allowances for December gained as much as 1.2 percent to
14.88 euros ($20.91) a metric ton and were at 14.83 euros a ton
as of 11:58 a.m. on London's European Climate Exchange. This is
the most expensive price since Oct. 29. The spread between EU
permits and UN credits for 2010, traded as a separate contract,
widened 9 cents, or 3.8 percent, to 2.49 euros a ton, the widest
since June 24.
U.K. gas for delivery in the six months from April
increased 0.9 percent to 47.55 pence a therm on the ICE Futures
Europe exchange, which would be the highest close since Oct. 26.
That's the equivalent of $7.68 a million British thermal units.
A therm is 100,000 Btus.
Higher gas prices may prompt some power generators to
switch from the fuel, which requires half as many carbon dioxide
allowances as coal.
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Mathew Carr, emissions markets, energy reporter. London Bloomberg News ph +44 207 073 3531 yahoo ID carr_mathew
