Power Curve Hits All-time Low, Spot Prices Ease

The Czech and Hungarian power curve hit an all-time low on Monday due to low demand in over-supplied markets and lower spot prices, traders said.

The Czech front-year contract traded 1.1 percent lower to 31.60 euros ($38) per megawatt-hour (MWh), while the Hungarian Cal '16 declined nearly 1.5 percent to 42.08 euros.

"Both contracts are tracking the benchmark German front-year contract which has hit its lowest level in 11 years due to weak demand and over supplied energy markets," one trader said. "It is also due to plummeting oil and coal prices," he added

The German Cal '15 contract lost 41 cents to 31.95 euros in afternoon trade on Germany's European Energy Exchange (EEX).

Oil prices slumped to new 5-1/2-year lows on worries about a surplus of global supplies and lacklustre demand.

EU carbon futures shed 6 cents to 7.03 euros a tonne in afternoon trading.

On the nearby curve, Czech and Slovak spot power prices declined more than 5 percent to 36.50 euros. Hungarian day ahead fell nearly 3 percent to 43.41 euros, while Romanian power for delivery on Tuesday declined 6 percent to 41.70 euros.

"Demand is lower than expected and prices are falling despite an expected fall in wind power generation on Tuesday. There is also plenty of hydro power from the Balkans region," a trader said.

Data from Thomson Reuters Point Carbon forecast wind power generation in Germany decreasing by 3.4 gigawatts (GW) to 2.3 GW, while solar power output was forecast to increase by 450 MW to 1.6 GW.

Day-ahead power on Poland's POLPX exchange ticked up slightly to 143.62 zlotys from 138.47 zlotys as bourse data showed power plant outages were expected to increase to 4.2 GW on Tuesday from 3.9 GW the day before.

Reporting by Maja Zuvela