CEE POWER-Cool weather supports Czech spot power

                                
 * Rising demand as holidays also help spot
                                
 * Cal '11 falls 1 pct to 49.25 euros per megawatt hours
                                
 
                                
 PRAGUE, Aug 31 (Reuters) - Cool weather and rising demand as
summer holidays ended drove up Czech spot power on Tuesday,
while the Cal '11 contract declined along with carbon, traders
said.
                                
 Electricity for Wednesday delivery rose nearly 2 percent to
48.75 euros per megawatt hour in the over-the-counter market as
temperatures remained well below seasonal averages.
                                
 "Tomorrow is the first day of September, which means
holidays are coming to an end and factories are working at
fuller capacity," one trader said.
                                
 Further along the curve, October power rose 5 cents to 51.05
euros, while Cal '11 declined nearly 1 percent to 49.25 euros.
                                
 The benchmark German Cal '11 contract <F1BYc1> fell 63 cents
to 51.10 euros on Germany's EEX.
                                
 "The only thing that is keeping the Cal '11 up is strong
carbon," another trader said. "My guess about the Cal '11 is
that it's overpriced if trading above 50 euros.
                                
 Around the region, Czech utility CEZ confirmed an internal
analysis showing electricity bills could soar 22 percent in 2011
for residential consumers and 27 percent for large business
users mainly due to generous renewable energy subsidies.
                                
 In the analysis, CEZ's head of sales and trading, Alan
Svoboda, also estimated that installed solar capacity would
likely rise to 1,000 MW by the end of the year from a current
650 MW. [ID:nLDE67U162]
                                
 An auction at Hungarian power exchange HUPX cleared 3,226
MWh of baseload power for Wednesday delivery at 46.54, up 10
cents from a day ago. Day-ahead power on the Polish POLPX
exchange rose to  198.22 zlotys, from 193.20 zlotys.
                                
 Oil fell to around $74 a barrel on Tuesday and was heading
for its first monthly decline since May, pressured by bulging
stockpiles and concern about the strength of economic growth and
future demand. [O/R]
                                
 European carbon permits trading on the European Climate
Exchange fell nearly 1 percent to 15.33 1442 GMT as weaker
German power and crude oil prices weighed. [EU/CARBON].
 (Reporting by Michael Kahn; editing by James Jukwey)