Warm Weather Unlikely to Leverage Lower Energy Costs


This year’s festive period has been one of the warmest we have had in the UK for several years, but consumer groups are warning that just because we have warmer weather, this does not mean lower heating costs.

After experiencing the fourth warmest December on record, with 1979, 2000 and 2006 being only marginally milder than 2015. This unsettled weather pattern is set to continue until the New Year, according to the Met Office, but not having to use your heating as much doesn’t necessarily mean that you will save money this Christmas.

Energy costs are determined by a combination of wholesale energy prices, the cost of maintaining the energy networks, the energy efficiency levies as well as tax rates. Other factors taken into consideration include where you live, what tariff you are on and how much electricity you use in bulk.

It has been pointed out that although the cost of wholesale energy has reduced steadily in recent years, British Gas was the only big six supplier to make two reductions to standard energy tariffs this year. It is also expected that over half of the British population will ration their energy use this winter.

This doesn’t mean it is all bad news though, with energy costs not getting any lower with the warm weather, it does mean that they aren’t getting any higher either and it is unlikely that there will be any hikes in price in the coming year.