Platts: European Power Prices Fell 10.2% in October on Low Demand, Oversupply

U.K. and European Natural Gas Down as Mild Weather Combines with Ample Supplies

Nov 12, 2013, 08:58 ET from Platts

LONDON, Nov. 12, 2013 /PRNewswire/ -- Day-ahead electricity prices in Continental Europe fell sharply in October, with warm weather suppressing demand and windy conditions boosting renewable energy output, according to monthly data just released by Platts, a leading global energy, petrochemicals and metals information provider.

The Platts Continental Power (CONTI) Index* fell 10.2% in October to €44.44 per megawatt hour (/MWh) compared to the September rate of €49.49/MWh. Year-over-year the index is down 11.4%.

"German near-term power prices turned bearish in October and into November as strong wind output displaced conventional generation," said Andreas Franke, Platts editor. "German wind output in October was 47% higher than a year ago, while the country's solar panels generated 5.5% more electricity than in October 2012."

Oversupply is not confined to Germany. Despite a slow return to service following maintenance of a number of nuclear reactors in France, the French day-ahead power price in October was down 6% compared to September. Even the "island" system of the U.K. saw the most recent monthly average power prices dip 1% on September.

"October 28's St. Jude's Day storm and high winds saw the lowest U.K. day-ahead price for the month at £45.45/MWh," Franke said. "Since then, rising nuclear output into November has kept a lid on U.K. prices."

Meanwhile, U.K. natural gas prices bucked a recent upward trend and fell in October from September, as mild temperatures capped demand and strong pipeline gas flows from Norway kept the system well supplied.

The day-ahead contract averaged 65.10 pence/therm (p/th) during October, compared to 65.70 p/th in September – a near 1% decline. In 2012 the price rose by 6.34% to 64.35 p/th month-over-month.

"After a late surge, U.K. gas storage levels reached 98.21% of capacity late October," Franke said. "Daily U.K. gas demand in October averaged about 190 million cubic meters, up 23% month-over-month, but down 12% year-over-year."

At Continental Europe's most liquid natural gas trading hub, the Dutch TTF, the average price of day-ahead gas in October was €25.87/MWh, down 2.3% on September and 3% year-over-year. Warmer-than-average temperatures combined with strong Norwegian gas flows to guide prices lower.

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








TTF (€/MWh)




U.K. Power (£/MWh)




U.K. Gas (pence/therm)




Source: Platts

NOTE: 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 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. The Platts assessments reflect prices as determined between buyer and seller in the open physical markets.

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

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