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> The grid absolutely is a market and should be. ...but generally not a free market in most jurisdictions. The Texas grid is an ongoing experiment, and yet eve
by sangnoir 2y ago
> The grid absolutely is a market and should be.
...but generally not a free market in most jurisdictions. The Texas grid is an ongoing experiment, and yet even the Texas legislature had to step in to bail out[1] providers' massive losses from with very high energy spot prices - it turns out the demand for energy is pretty inelastic at below-freezing temperatures.
1. Via a surcharge on all future customers. That's not very free market of them.
- kortilla 2y agoWhat do you mean it’s not a free market? In the western grid I can absolutely contract for access to the grid without any kind of government intervention. So it’s definitely a free market in who can buy and the price is negotiated. In Texas it’s just a different pricing structure with instantaneous pricing. That’s not more or less free market.
- sangnoir 2y ago> What do you mean it’s not a free market? The state government stepped in to socialize the losses incurred by private companies during the last snowstorm. Perhaps we can call it "Free markets with Texan characteristics"?
- consteval 2y agoLike most US industries, it's a Free Market* * Except big players will never go under, and substantial losses are socialized