Timeyin Akerele

So it's quite a complicated market, but actually your basic point is correct.

that if you put more renewables on the system, the wholesale price goes down, but you're paying for those renewables with the longer term contracts and subsidies.

So it's paid for in a different way.

But over time, it does offer the opportunity to bring down the cost of energy bills.

So for example, compared to the Ukraine gas crisis, when the gas price went up, the electricity price went up almost one for one in the same sort of

proportion.

This time with the Iran crisis, the gas prices shot up not as much, but it shot up.

The electricity price hasn't gone up as much.

And that's because the renewables in the system provide a bit of price stability, because they've got those long term contracts.

So it all depends on the counterfactual.

So it depends on the gas price.

And that's the trade-off.

So in a time when gas prices are high, and obviously Ukraine crisis, Iran crisis, gas prices go up.

At that point, renewables are incredibly good value.

We pay much less for them.

When gas prices go much lower, and there have been periods when gas prices have been low,

Actually, some renewables look a bit more expensive, or nuclear might look more expensive than the gas price at that point.

So you've got this sort of trade-off, and it's up to the government to get the best possible value, because they're the ones who agree the price or negotiate the prices or run auctions for those renewables and the nuclear program.

So it's up to them to get the best possible price as we make that transition to a net zero, a clean energy system.

But if they can get good prices for that, then you can deliver over time