Millions of Scots can expect a “boiler bonus” from the warmest New Year in history – the hot holiday weather has helped slash wholesale gas prices by more than half.
Families fearing sky-high bills in spring can take some comfort from a 60 per cent reduction in the UK benchmark price for gas since December 21.
The hottest Hogmanay and Ne’er Day ever recorded have helped reduce demand for energy to much lower levels, a trend seen across Europe thanks to the warm spell.
In addition, a gas glut has also emerged as cargoes of Liquified Natural Gas have recently started arriving at our ports, lured here by high prices before Christmas.
Tom Rodgers, European gas analyst at Icis, the price reporting agency, said: “The price has collapsed in the past 10 days faster than it spiked in the equivalent period before.”
He said that the price rise before Christmas had “enticed a large fleet of LNG cargoes to head to Europe, which is now starting to land on these shores.
“Meanwhile, we have had very warm weather for the time of year, intensifying the drop in demand that usually comes with the festive period.”
New Year’s Day proved a record-breaker, with 16C recorded at Achnagart in Sutherland. Hogmanay was also a record-breaker, when 16.1C was notched up at Kinlochewe in Wester Ross.
The bad news is that any price gains could evaporate if January produces a prolonged cold snap.
The north of Scotland has been given notice of a yellow “be aware” warning from the Met Office for heavy snow and blizzards from tonight.
It’s feared winds of up to 70mph could whip up blizzards. Drifting snow has also been predicted on routes in Central, Tayside and Fife, Grampian, Highlands and Islands and Orkney and Shetland.
Simon Partridge of the Met Office said: “Once show starts to drift, anything can happen. People need to take care in the warning area.”
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