1. Gas-powered electricity generation sets the wholesale rate (for _all_ forms of generation) more often than not, and gas is expensive, especially after we had to find alternative sources in order to punish Russia for invading Ukraine.
2. Other than the wholesale rate, we need to _build_ all this clean energy, we need to attract investment, and it's our promise to pay for that CapEx over 15-20 years (the strike price) that we'll be paying for in our bills once gas is out of the picture, moreso than the actual cost of generation.
1. Gas-powered electricity generation sets the wholesale rate (for _all_ forms of generation) more often than not, and gas is expensive, especially after we had to find alternative sources in order to punish Russia for invading Ukraine.
2. Other than the wholesale rate, we need to _build_ all this clean energy, we need to attract investment, and it's our promise to pay for that CapEx over 15-20 years (the strike price) that we'll be paying for in our bills once gas is out of the picture, moreso than the actual cost of generation.
Also, Tories in 2023 failed to attract any investment, no capacity added: https://www.bbc.co.uk/news/business-66749344
Whereas Labour in 2025: https://www.bbc.co.uk/news/articles/cly8ynegwn4o
... we will find out if this worked, after the auction is finished and they announce the results (around November 2025 - February 2026)