London (Platts)--12Dec2012/923 am EST/1423 GMT

French prompt power prices fell Wednesday as temperatures are expected to become milder in coming days after a severe spell of cold weather across Europe, subsequently easing pressure on demand heading toward the weekend, market sources said.

Baseload power for delivery Thursday fell by Eur9 on the day to Eur71/MWh Tuesday, while peakload shed Eur4.85 to last trade at Eur82.30/MWh.

The baseload price was up around Eur22.50/MWh week-on-week Tuesday, and peakload had gained Eur24.90/MWh.

The differential between OTC and the exchange remained wide Wednesday, as Epex Spot settled the baseload contract Eur2.46 lower than OTC at Eur68.54/MWh, and Eur1.96 lower than OTC in peakload at Eur80.34/MWh.

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Traders said the milder weather on its way, especially at the weekend, was lowering prompt prices, while ample levels of hydro generation and high levels in wind in both France and Germany also weighing on prices.

The latest CustomWeather forecast shows that temperatures in Paris are currently 6 degrees Celsius below the 2-8 C seasonal norm, but will rise by 1 C Thursday, then suddenly increasing by a further 6 C Friday, and then to 3 C above average Saturday.

RTE's latest demand forecast shows that maximum consumption in France will remain around 86-90 GW in Thursday's session, falling to 80.7 GW Friday and then to 77.5 GW by Monday.

In the Netherlands, temperatures in Amsterdam are currently just 1 C below the seasonal norm of 1-6 C, but are forecast to fall by 4 C Thursday, before increasing again at the weekend to 2 C above normal Saturday.

Dutch day-ahead baseload was changing hands Eur2 lower on the day at Eur70/MWh Tuesday, while the peakload price remained unchanged at Eur83.50/MWh. APX-Endex settled the same contracts at Eur68.29/MWh and Eur81.22/MWh.

On the supply side in France, nuclear availability is unchanged at 57.9 GW, and is forecast by RTE to remain around that level through to the end of the week, while coal generation is to hold around 5.3 GW Thursday and then rise 5.6 GW Friday. Gas-fired supply will hold at 4.6 GW, and hydroelectric will remain at 9.2 GW.

A little further forward, the decline in French week-ahead power prices calmed Wednesday as prices appeared to find a more comforting trading level of Eur47.50/MWh in baseload, down just Eur1.25 on the day, having fallen Eur5 since the week began. The peakload contract was down just 85 euro cents from Tuesday's close at Eur60.90/MWh.

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