Oh FFS!!!
"As Britain prepares this weekend for a Siberian blast, councils across the country will be anxiously checking their betting slips.
The increasing cost of keeping roads open during harsh winter weather has forced councils to make spread bets to offset the risk of big financial losses. Weather derivatives – financial contracts that pay out in cases of extreme weather – are being actively tested by councils across the country.
The recent succession of historically cold winters, followed this year by what may prove to be the warmest winter on record, has fuelled concern among council strategists. Guardian research has revealed that in the last two years, councils nationwide have overspent on their winter budgets by up to 100%.
Dave Simpson, head of finance for strategy and communities at Lincolnshire county council, said: "We are looking at derivatives on a trial basis. Last year, we would have saved £1.5m. Derivatives could help generate considerable savings; this is very important to us during these difficult economic times.
"However, usage [of derivatives] could also potentially be an additional cost. With the mild winter this year we would so far have been out of pocket."
Derivatives are widely used in the private sector, especially the leisure, agricultural, energy and construction industries, to safeguard businesses. The worldwide weather derivatives market is worth more than £7bn."
Source: Hedging on roads: councils bet on icy weather | UK news | The Guardian
"As Britain prepares this weekend for a Siberian blast, councils across the country will be anxiously checking their betting slips.
The increasing cost of keeping roads open during harsh winter weather has forced councils to make spread bets to offset the risk of big financial losses. Weather derivatives – financial contracts that pay out in cases of extreme weather – are being actively tested by councils across the country.
The recent succession of historically cold winters, followed this year by what may prove to be the warmest winter on record, has fuelled concern among council strategists. Guardian research has revealed that in the last two years, councils nationwide have overspent on their winter budgets by up to 100%.
Dave Simpson, head of finance for strategy and communities at Lincolnshire county council, said: "We are looking at derivatives on a trial basis. Last year, we would have saved £1.5m. Derivatives could help generate considerable savings; this is very important to us during these difficult economic times.
"However, usage [of derivatives] could also potentially be an additional cost. With the mild winter this year we would so far have been out of pocket."
Derivatives are widely used in the private sector, especially the leisure, agricultural, energy and construction industries, to safeguard businesses. The worldwide weather derivatives market is worth more than £7bn."
Source: Hedging on roads: councils bet on icy weather | UK news | The Guardian
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