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The strike price is the guaranteed price that British ratepayers and the government have guaranteed Hinckley. (The government will make up the difference if retail prices are lower.)

It’s entirely possible its builders will go belly up and need even more bailing out, but that’s some years away.



> The government will make up the difference if retail prices are lower

… and pocket it if higher, right?


Nope! It’s a price floor.


It's not a price floor [1].

  If the wholesale price of power is higher than the strike price, then the operator pays the difference to the regulator.
  
[1] https://www.jstor.org/stable/pdf/resrep14807.4.pdf




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