I would refer you to post #1674 (3 Feb) by "Grumpyoldman01" for some of the financial arguments which could be used to keep passenger fares at a reduced level for electrification. The trains are quieter, can accelerate quicker and potentially allow for greater frequency to give passengers more choice of journey times. There is much less noise and atmospheric pollution at stations in towns and cities. I believe there are many studies which show the overall benefits of electric trains to all other railway systems.
Excellent question about passenger benefits. Certainly a big part of Grayling's message in July was re-framing electrification schemes in terms of passenger benefits rather than, say, operational or societal benefits. Customer centricity is great, but rail depends so much on state handouts, that it's a bit disingenuous to suggest that "society" or "taxpayers" do not receive benefits from the railway
Quieter: Yes, but I think that benefit is more for people living near the railway. Yes an EMU is quieter than an 800 is quieter than a 222, but the engine noise in a 222 is not too intrusive to me - I don't hear people complaining/clutching their ears. It's only a real benefit if shows up in more journeys or higher fares. I really don't think 99% of rail users care.
Acceleration: Agree... However, is an EMU really so much faster than a 222? A typical post-2023 EMT service with bimodes would probably only have 4-5 stops where it pulls away on diesel, so to me this feels like 2-3 minutes end-end? Remember it'll be all electric South of Kettering anyway, so should deliver operation/ resilience/ journey time improvements South of Bedford.
Greater frequency: I think the fiasco over the EMT timetable post-May means that, with the GTR timetable, you're never going to see more than 6tph EMT out of St Pancras. Even if you did, then it probably needs the Syston-Wigston Capacity scheme (which is not electrification) to get more than 4tph through Leicester, or have platform capacity to turn back EMT services.
I completely agree on local air quality. Standing on the platform at Leicester in calm weather is a deeply unpleasant experience. Although presumably new bimodes are a big step ahead of HST/222 in terms of NOx and particulates.
The compelling part for me is getting away from fossil fuels - The total cost of electricity is lower, and in the long-run will be less volatile than diesel (the wholesale electricity price is a declining part of NR's bill).
Plus the CO2 argument. Doesn't directly benefit the passenger, but hey, passengers are also inhabitants of planet Earth. It will be interesting to see if an upward CO2 price changes the BCR for electrification.
On the upside - given the HS2/Chesterfield-Sheffield, and the Kettering project, I think the MML is only one chunky infill scheme (LEI/DER/NOT) away from being an electric passenger railway, with the ability to use batteries to get across gaps e.g. Leicester-Kettering or Derby-Clay Cross, which would certainly be more innovative.