LONDON, Sept. 5, 2012 /PRNewswire/ -- Continental European day-ahead power prices rose more than 7% month-on-month in August as reduced nuclear power generation operations in France and Belgium continued to tighten supply for the region, according to Platts, a leading global provider of energy, petrochemicals and metals information.

"Near-term market concerns about nuclear power supply were apparent in the spot and front month contracts," said Andreas Franke, Platts European power editor. "However, a longer market view reveals that oversupply and weak demand are keeping prices below 2011 levels, with Belgian month-ahead power down 9% year-on-year and that of Germany down 14%."

The average cost of day-ahead power in Continental Europe as indicated by Platts Conti Index* was EUR48.87 per megawatt hour (/MWh) in August 2012 compared to EUR45.55/MWh in July 2012. Year-on-year, the August average is up 3%.

U.K. prices moved the opposite direction during August, according to the latest Platts price assessments. Day-ahead power prices were down 4% month-on-month, and down 13% year-on-year. While interconnected with France, the U.K. power market is less sensitive to French nuclear outages because of its own ample supply position during a period of weak demand.

Meanwhile continental natural gas prices dipped in August but rose versus a year ago. Platts price assessments show the average cost of day-ahead natural gas at continental Europe's most liquid hub, the Dutch TTF, was down one percent to EUR24.05/MWh in August. This compares to EUR24.34/MWh in July and was up 10% from August 2011.

The price decline for day-ahead natural gas in the U.K. was slightly greater than that of Europe, down four percent to 54.56 pence per therm (pence/therm) from July's 55.63 pence/therm.

    Platts Continental Europe and U.K. Day-Ahead Monthly Averages

                                                                  Aug-12       Jul-12       Jun-12       Aug-11
    CONTI power (Euro/MWh)                                               48.87        45.55        43.15        47.37
    TTF gas (Euro/MWh)                                                   24.05        24.34        23.83        21.82
    U.K. Power (GBP/MWh)                                                 40.93        42.84        42.12        46.93
    U.K. Gas (pence/therm)                                               54.56        55.63        55.17        54.11

NOTES: All figures are monthly averages of daily day-ahead contract prices as assessed by Platts.

*Platts Continental Power (CONTI) Index is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands. The index reflects prices as determined between buyer and seller in the open market. The Platts U.K. assessments reflect day-ahead contracts assessed for firm delivery of power on the high voltage network of England, Wales and Scotland, and at the National Balancing Point for gas.

For more information on electric power or the methodology used by Platts in its power assessments, visit the Platts website www.platts.com.

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SOURCE Platts

SOURCE: Platts