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Italy: Activity slows down as holiday approaches

30 Apr 2012 20:06:52 | edem

Despite almost no liquidity on the Italian electricity market, some curve contracts managed to post small gains on Monday. Only two trades were reported over the whole session.

As 1 May is a public holiday in Italy, most trading desks seemed to have extended the break to Monday, too, drying up liquidity to the smallest trickle.

As a result, the Italian Calendar Year 2013 Baseload price, as well as many other contracts, was assessed flat to Friday's close.

Only two trades on Q4 '12 Baseload were closed over the session, at €80.50/MWh.

However, sources reported slightly higher bid-offer spreads on the other quarter contracts, mirroring the €0.20/MWh gains on Q4 '12 Baseload.

On the spot, the Day-ahead figure for 1 May reflected the poor demand caused by the public holiday in the country, according to market operator GME data. The value outturned at €59.15/MWh - with all the zonal prices at the same price except Sicily - down from the previous day's €79.98/MWh.

The final average for April spot stood at €72.72/MWh, much lower than the last traded level for the corresponding forward contract, which was €75.00/MWh, according to ICIS data.

The spot value for Monday delivery also showed a very tight Baseload-Peaks spread, which stood at €1.15/MWh. This could be attributed to the significant rise in temperatures and sunny weather seen in the country, boosting solar generation.

Meanwhile, during a shareholder's meeting on Monday, the CEO of Italian power generator Enel, Fulvio Conti, said that the company did not expect Italian power consumption to return to pre-crisis levels before 2014 at the earliest.

Conti added that in March there was a 5% fall in consumption compared with the previous year. "And there is no recovery in sight," he said. MM

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