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EUROPE POWER-Curve prices fall in echo of bearish tone to energy markets

·2 min read

FRANKFURT, Sept 23 (Reuters) - European power curve prices fell on Friday on bearish regulatory and recessionary signals for oil, gas and carbon markets and nearby contracts eased on expectations for more wind power.

The European Commission is working on more measures to tame gas prices and support energy firms and will lay out further plans next week, while financial watchdog ESMA proposed a brake on power gas derivatives.

In more market-taming moves, Germany is looking at nationalising gas importer Sefe, previously Gazprom Germania, after Berlin already moved this week to nationalise top gas importer Uniper and is looking at helping local utilities cope with the gas supply crisis.

The downturn in business activity across the euro zone is deepening, dragging down industry demand for energy.

The German year-ahead baseload power contract was 5% down at 498 euros ($486.30) a megawatt hour (MWh) at 0900 GMT amid across-the-board forward losses.

The equivalent French position shed 2.7% at 569 euros.

European CO2 allowances for December 2022 expiry dropped 4% to 67.59 euros a tonne.

European spot power prices for Monday had not traded but week-ahead delivery positions were off 12.9% at 270 euros and off 5.7% at 330 euros respectively in Germany and France.

Wind supply in Germany was seen in a 13-16 gigawatt (GW) daily range during the next working week compared with 5.5 GW on Friday, Refinitiv Eikon data showed.

French wind power output will likely range between 4.8-7.2 GW compared with 0.9 GW Friday.

Power demand was seen falling in Germany where next week's daily average of a predicted 54.4 GW would be 2.5 below Friday's level, according to the Eikon forecasts.

Usage in France will be unchanged from the level seen Friday across the next working week at 44.5 GW each day.

Water depths on the river Rhine in Germany dipped this week but remain well above the crisis lows of this summer, easing worries about barge shipments to coal plants that were hampered at times by restrictions. ($1 = 1.0241 euros) (Reporting by Vera Eckert; Editing by Alexander Smith)