Timeyin Akerele

But that guaranteed price enabled us to build a lot of renewables at the lowest possible price because you're taking risk away from the developer.

So you'll get a guaranteed price for 15 years, government now says 20 years.

And that means they can keep their costs as low as possible.

And so actually, that point you made is very valid point around gas setting the marginal price for one of the one unit of 10.

Actually, if

Increasing number of those other nine are on these fixed price contracts.

That point doesn't apply.

They have a fixed price and consumers benefit from that fixed price.

And what's happened over time is it maybe it was nine, that theoretical 10, a long time ago with the renewables obligation.

But when we move to contracts for difference, they are now filling up that nine and displacing, you know, the older contracts are coming to an end and the new ones are becoming dominant.

There's a fixed price, which they agree to right up front before they even build the wind farm or the solar farm.

So that protects us against that gas price effect.

Sort of like an option, yeah.

So of that two-thirds...

I can't remember how much exactly.

So right now, I think gas is generating about 40% of our electricity as a country, and renewables plus nuclear is probably up to about 50%.

But an increasing share of that 50% is on these fixed price contracts, including Hinkley, the big nuclear power station, when it gets started in a few years' time.

So that's going to make a real difference to that point you're making.

I think that's why when the government looked at this, they thought, actually, this problem is solving itself.

Yeah.