Weather and energy trading

It is no secret that the weather and energy consumption have always been intrinsically linked.  The basic theories of supply and demand drive a lot of the relationship – if the weather is very cold we will demand more power and knowing what the weather might do months, seasons or even years ahead will help shape predictions on how much power we need to generate. But weather is just one factor that effects our power requirements and prices, and until recently, other core factors like UK politics, geopolitical events, the economy, etc.