LONDON, May 7, 2015 /PRNewswire/ -- The price spread between U.K. and Continental European power prices widened in April as a hike in the U.K.'s CO2 tax pushed prices up, while record solar power production in Germany saw spot prices fall below EUR30 per megawatt hour (/MWh), according to data just released by Platts, a leading global provider of energy, petrochemicals, metals and agriculture information.

European power prices, according to Platts' Continental Power Index (CONTI)*, fell 6.2% in April to EUR36.03/MWh compared to March's EUR38.43/MWh. The Index was up 5.2% compared to April 2014's EUR34.25/MWh.

In the U.K., however, the average day-ahead power price rose 8% in April on a month-over-month basis and was up 6% from year-ago levels. The increase was attributed in large part to the fact that on April 1, the Carbon Price Support mechanism rose from £9.55 per tonne of carbon dioxide (/t CO2) to £18.08/t CO2, reducing the relative profitability of coal-fired power generation.

Platts' regional analysis of European power and gas markets in April showed the following:

    --  Germany: Day-ahead power prices averaged EUR30.22/MWh in April, down 2%
        month over month and 3% year over year. Hourly wind and solar output
        averaged 13.5 gigawatts (GW) last month, well above nuclear output of 10
        GW. Combined renewables' output of 40 GW pushed some intra-day hourly
        prices below zero on Wednesday, April 22. For Sunday,April 12, the
        day-ahead price settled below zero on the spot exchange.
    --  France: Day-ahead power prices averaged EUR38.97/MWh in April, down 9%
        month over month but up 20% year over year. Nuclear and hydro
        inventories improved last month, easing both tightness in supply and
        price pressures.
    --  U.K.: Day-ahead power prices averaged £43.62/MWh in April, up from
        £40.28/MWh in March and nearly three pounds higher than in April 2014.
        Total demand for the month was 22.7 terawatt hours (TWh), down from 26.4
        TWh in March. Wind power production fell to 1.4 TWh in April from 2.3
        TWh in March. Gas-fired power production, at 6 TWh, was down 7% in April
        versus March, while coal-fired production was down 25% at 7.1 TWh. U.K.
        day-ahead gas prices at the National Balancing Point fell just 1% month
        over month in April to an average of 46.58 pence/therm. On a
        year-over-year basis, prices were down 7%. Monthly total end-user gas
        demand fell 32% last month to 4.7 billion cubic meters (Bcm).
    --  Netherlands: On the Dutch TTF, continental Europe's most liquid natural
        gas hub, day-ahead gas prices in April averaged EUR21.97/MWh, up 1% from
        March and up 8% from April 2014. Delivered spot prices were range bound
        in the first half of the month at a relatively high
        EUR21.90-EUR23.25/MWh, but fell back to EUR21.30-EUR21.80/MWh by late
        month. The price drop-back occurred after an April 14 Dutch court
        decision against full shutdown of the giant Groningen field despite
        earthquakes in the region.

"Northwest Europe turned to storage gas to meet demand needs on the back of Groningen output cuts and a heavy Norwegian maintenance schedule," said Platts analyst Alex Froley.

"As April began, gas storage levels were already below year-earlier levels, which followed an unusually mild winter," said Froley. As such, the pace of gas-storage injection this summer would have to be ahead of last summer to refill stores ahead of the coming winter, he said.

As April began, gas storage in Germany's key storage region was at 29% capacity, with total stocks of 6.6 Bcm. By month's end, storage supplies had slipped to 24%, well below the 63% capacity at the end of April 2014.

France, another key gas storage region, entered April with gas inventories of 2.0 Bcm, or 17% capacity, and ended the month higher at 21% capacity. Still, capacity use was well below the 31% at end of April 2014.

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


                                                                                    Apr-15           Mar-15       Apr-14

    CONTI (EUR/MWh)                                                                           36.03         38.43        34.25

    TTF (EUR/MWh)                                                                             21.97         21.82        20.27

    U.K. Power (BPS/MWh)                                                                      43.62         40.28        41.14

    U.K. Gas (pence/therm)                                                                    46.58         47.24        49.87

    Source: Platts


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

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

* The Platts CONTI is a demand-weighted baseload average of day-ahead contracts assessed in Germany, Switzerland, France, Belgium and the Netherlands. 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 (NBP) for gas. The Platts assessments reflect prices as determined between buyer and seller in the open physical markets.

About Platts: Founded in 1909, Platts is a leading global provider of energy, petrochemicals, metals and agriculture information and a premier source of benchmark prices for the physical and futures markets. Platts' news, pricing, analytics, commentary and conferences help customers make better-informed trading and business decisions and help the markets operate with greater transparency and efficiency. Customers in more than 150 countries benefit from Platts' coverage of the biofuels, carbon emissions, coal, electricity, oil, natural gas, metals, nuclear power, petrochemical, shipping and sugar markets. A division of McGraw Hill Financial (NYSE: MHFI), Platts is based in London with more than 1,000 employees in more than 15 offices worldwide. Additional information is available at www.platts.com.

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Media Contact: Global, EMEA & U.S.: Kathleen Tanzy, Kathleen.tanzy@platts.com, +1 212-904-2860

SOURCE Platts

SOURCE: Platts