this post was submitted on 10 Apr 2024
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I find it interesting that this is a good thing in the US and most of Europe, but in France this majorly fucked our electricity market by forcing the (mostly) state funded electricity producer into selling their electricity to some companies that provide no value aside from being an intermediate between the producer and the consumer (they are not required to produce their own electricity to buy some from EDF at a discount, and they are even allowed to sell it to consumers for less money than the lowest price EDF is allowed to charge when they are doing the same thing, because of some dumb regulations I can't remember).
All in the name of the free market because "monopoly bad", even though electricity production and especially distribution is, as you said, a natural monopoly.
Yeah you can't combine a market mechanism while telling a production (quasi-)monopolist that they need to fix prices.
Reminds me of the good ole GDR: They would subsidise bread so that people could always afford it, a completely laudable goal. People also had chickens in their backyard because eggs and meat and when it came to feeding those chickens, they had a look at the prices -- and, yeah, the state subsidised bread. Not grain. So they fed the chickens bread as it was cheaper. It's an easy enough fix, just shift the subsidies but nope, governmental inertia or something prevented them from doing it.