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Even the terminology "deregulation" betrays the lack of understanding of politicians of how our market system works.
Efficient markets don't just magically arise in an environment of no regulation.
Compare how well the chaotic Russian economy works against the heavily-regulated New York Stock Exchange.

Efficient markets arise in a clear framework of regulations that are strongly and consistently enforced.

That's why "power deregulation" didn't work.
The governments stuck their fingers in and turned it into power chaos.

Economist: Bring me your powerless masses

The way the [US] has deregulated power has left investors and utilities confused, with little incentive to invest in upgrading transmission. Paul Joskow, an economist at the Massachusetts Institute of Technology, says that “the wrangling between pro- and anti-competition forces, jurisdictional disputes between federal and state policymakers, and plenty of ignorance have led our electric-power system to become stuck somewhere between the old system of regulated monopoly and a new system that relies more on competitive power markets. If we remain stuck here, there will be much more trouble with electricity down the road.”

posted by Richard at 12:39 / permalink (post) | permalink (numeric)