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> This can only be the case if the government is not acting in good faith, and has planned for this eventuality. Because during normal times it actually leads
by doikor 4y ago
> This can only be the case if the government is not acting in good faith, and has planned for this eventuality.
Because during normal times it actually leads to cheaper prices. It has only really been an issue now due to the crisis.
Also this is mostly a consequence of the free market. In the late 90s and early 2000s the Nordic countries freed the electricity markets of the very tight government control. The markets then over time decided that they can make more money by combining each other by joining nord pool (originally a Norwegian company)
- kzrdude 4y agoThere is not just one way to have a free market. The market rules determine market outcomes, and different methods for how prices are formed could be used.
- jabl 4y agoSure, electricity is in some sense a pretty artificial market with the auctions and system operator etc etc. OTOH, commodities generally price at the margin, and the rules for the electricity market have been designed to mimic this price finding process that comes about more naturally in other commodity markets. So while currently there are certainly big issues with how the market functions due to Putin, anyone suggesting any major reform will have to think long and hard what the market mechanics are supposed to be, and what could be unintentional side-effects of that mechanism. At the moment there is a lot of political pressure to do something, anything, and it's very likely such hasty proposals will be throwing the baby out with the bathwater.
- kzrdude 4y agoThe gas situation may be a major stress to the system at this time, but prices were gradually rising even before this current crisis.