Electricity stocks still waiting to spark

Fund manager's comment

As the cost of a barrel of oil breaches the $60 mark, wholesale electricity prices are also breaking...

As the cost of a barrel of oil breaches the $60 mark, wholesale electricity prices are also breaking records. Although this phenomenon has attracted less attention than escalating oil costs, the implications could be equally significant for investors as we believe selected European utility stocks are well positioned to benefit. In France and Germany, prices for electricity to be delivered next year have recently set new records. The combination of higher fossil fuel prices and the introduction of European Union carbon dioxide emission allowances has increased costs for power companies, and...