Power Price Gaps Shrink Amid European Mergers: Energy Markets

BusinessWeek (Oct 21 2010)

1. Price differences in Europe’s power markets are evaporating as exchanges merge and transmission cables are used more efficiently, advancing the continent’s push for a single trading arena. The average gap between French and Dutch electricity for next-day delivery was 1.38 euros ($1.93) a megawatt hour in the first nine months of this year, according to data compiled by Bloomberg. It was 7.85 euros in the same period four years ago, before exchanges and grid operators began “market coupling,” the system that automatically directs energy to the country with the highest prices. (Read Full Article)

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