DEROGATION. Its bound to be needed and bound to happen. Lets face it the rail industry has tried hard enough to meet the deadline so will inevitably be allowed more time. More safety critical was slam door stock replacement - that did deadline was missed iirc ?.
The bearing on the 769 is that this does weaken the case for it.
Just give me more wires !.
More wires, ideally, sure - I'd love them.
But, the problem with a derogation is that it'd boil down to keeping Pacers, which would be politically toxic for a lot of politicians.
I've no problem with a Pacer - I prefer a 144 to a 150 (been a while since I was on a 143, due to reasons of geography) - I don't want to go off topic here but after all the hype, keeping Pacers would be political suicide.
Realistically the only options are converting old electric stock (whether that means 230s or 769s) or making some big cuts to services to tie into the electrification map (e.g. no DMUs to Manchester Airport or Blackpool or other electrified branches).
I don't buy into the idea that significant number of voters change the political party that they vote for because of things like electrification decisions (I think that enthusiasts often overstate the importance of railways to the general public) but I do think that the years of stigmatising Pacers (from even the Chancellor of the Exchequer at the time) mean that it's gone too far to be able to announce an extra few years for Pacers. Something like 769s has to be made to work - I don't think there's much of a realistic alternative*.
(* - bearing in mind that Northern passengers contribute less than a quarter of the cost of running the franchise, I'm obviously ignoring the simplistic "just order lots more 195s" option as that's going to need even bigger subsidies to justify which don't seem likely in the age of austerity - unless the DUP suggested them of course!)