Hungary Climbs Higher on Less Supply

Central European day-ahead power prices were mixed on Tuesday with strong renewable supply pulling Czech and Slovak lower and outages lifting Hungary higher, traders said.

Electricity for Wednesday delivery fell 5.5 percent to 27.50 euros ($37.79) in the Czech Republic and declined nearly 3 percent to 31.60 euros in Slovakia in the over-the-counter market as data from Thomson Reuters Point Carbon showed wind generation in the region remaining above 12 gigawatts.

Day-ahead in Hungary stayed well above the prices of its regional peers, climbing more than 7 percent to 48 euros in the over-the-counter market as a number of power plant outages - including the Matra coal-fired plant and the Paks nuclear power plant - crimped supply, traders said.

"The story for Czech and Slovak prices is the wind is staying strong but power plant outages are driving the price in Hungary higher," one trader said.

"Low Danube water levels in the Balkans are also supporting the price in Hungary."

Hungary, which has electricity shortages, imports hydro-generated power supplies from the Balkans.

Further along the curve, the Czech front month gained more than 2 percent to 29.35 euros and Hungarian electricity for May delivery ticked 5 cents higher to 38.15 euros.

On the Prague-based Power Exchange Central Europe, the Czech Cal '15 dipped 10 cents to 33.20 euros and the Hungarian front year climbed 15 cents to 42.75 euros.

Around the region, the benchmark German Cal '15 contract fell 7 cents to 34.06 euros on Germany's EEX in afternoon trading, giving up the gains from a day earlier. Day ahead on Poland's POLPX exchange fell to 172.10 zlotys ($56.68)from 182.78 zlotys.

Serbian water levels will be mainly flat through April 15, except on the Danube where they will rise slightly, the country's hydrometeorological service said in a weekly forecast on Tuesday.

The Balkan country's grid operator Elektromreza Srbije (EMS) also announced the remainder of cross-border capacity available for allocation in May.

Brent crude rose above $106 a barrel as further unrest in eastern Ukraine heightened tensions between Russia and the West, but hopes Libya would soon resume oil exports kept a lid on prices.

EU carbon futures gained almost 1 percent to 5.07 euros a tonne.

($1 = 0.7277 Euros) ($1 = 3.0364 Polish Zlotys)

(Reporting by Michael Kahn; Editing by Jane Merriman)