August 8, 2019 / 6:47 AM / 14 days ago

Uniper hedges hydroelectric power sales up to 2021

FRANKFURT (Reuters) - German utility Uniper (UN01.DE) hedged more than 70% of hydropower production in Germany for 2020 and over 15% for 2021 at prices below current market rates, slides released for an analyst call on Thursday showed.

Forward hedges of Swedish nuclear and hydro power were over 60% percent and over 10% respectively for the two years.

Hedge rates - to the extent that producers volunteer them - are tracked in wholesale markets as an indication of earnings.

They help assess the size of future volumes already tied up with counterparties, and the value of forward production.

Achieved German prices for 2019 had been 23-27 euros (£21.2-£24.88) per megawatt hour (MWh), those for 2020 were at 40-44 euros and 2021 at 46-50 euros, the slides showed.

German wholesale prices for 2020 baseload delivery of power from all generation sources closed at 49.95 euros TRDEBYZ0 and for 2021 at 49.50 euros TRDEBYZ1 on Wednesday, Eikon Refinitiv data show.

German power prices are the European benchmarks.

Uniper’s Nordic delivery prices for the three years were 22-26 euros, 25-29 euros and 29-33 euros respectively.

Uniper rival E.ON (EONGn.DE) on Wednesday offered details of its nuclear power generation hedges.

Reporting by Vera Eckert; editing by Jason Neely

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