Storm Isha is coming to the end of a fierce UK tour that showcases yet again the economic insanity of failing to plan and invest in long-term energy security.
Traffic Scotland reported gales of more than 100 miles per hour on the Tay Bridge overnight on Sunday amid widespread damage and disruption that halted ferry and train services and diverted flights away from Glasgow, Edinburgh and Aberdeen airports. Some 82,000 homes and businesses across Scotland suffered power cuts and more than 30 flood warnings are in place across the country. Multiple closures and restrictions have been issued across the road network.
All of this comes at hefty cost and more is in the offing as tribute act Storm Jocelyn is expected to land later today with winds gusting up to 80 miles per hour. But hey, there is one bright spot: gas prices slumped to a six-month low yesterday as Isha’s hurricane forces drove a surge in wind energy production. UK benchmark prices fell more than 6% towards 65p per therm, compared to prices of more than 136p in October.
Lower energy prices are of course welcome news for both consumers and businesses – more about that later – but failure to invest for the long haul by successive governments has left UK energy prices completely exposed to the erratic acts of nature and foreign aggressors.
A relatively mild winter so far has helped to keep gas prices down, and since Russia’s invasion of Ukraine both the UK and Europe have generally shifted their gas dependence to the United States, with these imports largely immune from Houthi attacks in the Red Sea. But gambling on........