Demand for gas amongst residential and small-business customers was almost 9% lower than expected in December, saving the government an estimated £260m on payments avoided via the Energy Price Guarantee (EPG) scheme.
December saw a cold snap hit the UK, with average temperatures falling to around 1°C below the seasonal normal. From this, a forecast of gas usage was derived based on historical customer behaviours to temperature.
The results forecast a demand of 69.7 TWh, compared to actual residential gas consumption of 63.6 TWh. This reduction of 6.1 TWh is likely to be caused by the impact of high prices on customers, with households less willing to use heating despite the significant drop in temperatures, but energy efficiency measures will also have had an impact.
As a result, the government are estimated to have saved £260m on payments not made via the EPG, alongside a collective saving of £600m for customers.
On reflection, these findings show the significant impact that energy saving measures can have on customer spending.
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Ian Barker
Ian shapes the BFY vision and inspires our team to bring it to life, while remaining central to complex client engagements in Strategy, Commercial, and Operations.
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