Correct, this is the problem that the Tories failed to identify when they started to reduce fossil fuel usage. It was a political decision taken to shore up support with people who ended up moving to the Lib Dems anyway (and everything unravelled anyway with Brexit for Cameron, who was probably the biggest proponent of this...Lib Dems incidentally also played a key role in blocking nuclear).

Comparing the prices of these two things does not tell you what the eventual cost is going to be.

To explain the context: the UK had to cap electricity prices because costs have risen so much, government is paying huge subsidies to providers, minister made bombastic claims in the last election that he could fix everything, nothing has worked out, he has now set up a range of quangos to employ his friends (reducing quangos was one of the promises in the election) who are now briefing the press aggressively with other lobbyists that costs are going to drop...despite the government having no political ability to do anything that will reduce costs (the latest briefing is that new gas plants are too expensive, an obviously misleading comparison on many levels).

UK electricity prices are extraordinarily high, the political context is that you have to say this will reduce them. This is obviously not going to lead prices to fall but the context has to be the same.

The other question is why we are doing this if this isn't going to actually cause prices to fall? As with many similar problems in the UK: too many people making too much money. Government is now subsidizing retail electricity prices to pay for private sector investment in high-cost technology that guarantees a high ROI. Most of the people quoted in the government's presser are lobbyists, as I said above a cottage industry of quangos has now sprung up surrounding Miliband. There is no way back.

In terms of macro, it is definitely quite interesting because the last few years of this have essentially made it impossible for the UK to operate as a modern industrial economy. How do you maintain employment with essentially no industrial function? Energy prices are so high commercially that some services businesses are actually struggling too. It is incredible employment and wages are so high in the UK (although the level of economic support the government is providing, particularly in services, is huge).