I think they are claiming that instantaneously and drastically increasing prices during an emergency effectively does nothing to incentivize supplies, because t

I think they are claiming that instantaneously and drastically increasing prices during an emergency effectively does nothing to incentivize supplies, because there are no additional supplies to be had, and that the right way to handle that is to heavily penalize failure to provide those supplies, and manage the risk proactively and in advance. So their solution would be more like raising the long term electricity supplies slightly, with incentives in place to make sure that failures like that don't occur in the first place.