The problem is that electricity costs would spike to insane levels (as seen on wholesale spot markets) and consumers should have price certainty and confidence

The problem is that electricity costs would spike to insane levels (as seen on wholesale spot markets) and consumers should have price certainty and confidence in supply, otherwise you get lots of costs in other parts of the economy. See e.g. California, where diesel gen sets are proliferating like crazy, or other markets where high CO2, high cost gas is the game theoretic optimum, eventually leading to an all-peak supply side.