Czech and Slovak Gain as Hungarian Premium Persists

Czech and Slovak spot power rose on Wednesday on forecasts for less renewable supply while reduced import capacity kept Hungarian day ahead prices at a regional premium, traders said.

On regional exchanges, electricity for Thursday delivery rose a little more than 2 percent to 39.30 euros ($50.79) per megawatt hour while Hungarian day ahead dropped 22 percent but remained at a regional premium of 45.64 euros.

Data from the Central Allocation Office showed a reduction in cross border capacity between Hungary and Slovakia through September 21 as two coal-fired units with a combined output of 264 megawatts were offline for unplanned outages.

"There is less cross border capacity with Slovakia which is helping to keep prices in Hungary higher," one trader said.

Data from Thomson Reuters Point Carbon showed forecasts for wind generation in Germany falling to 2 gigawatts for Thursday from 3.1 GW with solar output dipping nearly 1 GW to 4 GW.

Further along the curve, the Czech front month fell 5 cents to 33.95 euros while Hungarian power for October fell 30 cents to 46 euros.

On the Prague-based Power Exchange Central Europe, the Czech Cal '15 contract rose 10 cents to 34.60 euros while the Hungarian front year declined 10 cents to 43.80 euros.

Around the region, the benchmark German Cal '15 contract ticked 1 cent lower to 35.23 euros on Germany's EEX exchange in afternoon trade. Day ahead on Poland's POLPX rose to 308.26 zlotys ($94.84) from 299.44 zlotys.

Serbian grid operator Elektromreza Srbije published results of its October cross-border power capacity auction.

Russia has started limiting gas supplies to Poland, disrupting reverse flows to Ukraine, Russia's RIA news agency quoted the head of Ukraine's gas transport monopoly Ukrtransgaz as saying.

Brent crude dropped to a new 16-month low below $99 a barrel as rising supplies and weak demand helped extend losses into a fifth session, even as top oil exporter Saudi Arabia said it had cut oil production last month.

European Union carbon futures fell 4 cents to 6.10 euros a tonne in afternoon trading.

(1 US dollar = 0.7738 euro)

(1 US dollar = 3.2503 Polish zloty) (Reporting by Michael Kahn; Editing by Susan Thomas)