History is a set of mistakes to avoid, not examples of stupidity to repeat

The worst of the varied attempts at electricity deregulation is probably California’s. The mistake made was to allow wholesale rates to move without control, while insisting that retail rates be capped. Worse, retail volumes were not, while prices were capped. This was such foolishness that it drove the once mighty Pacific Gas and Electric into one of its bankruptcies.

Consumers in Britain have so far been spared from a surge in their bills because of the energy price cap, although this has had the side effect of triggering a wave of bankruptcies because suppliers were unable to pass higher costs on.

It’s not a side effect, it’s an inevitable consequence.

There is an argument in favour of having generalists in power. They might have a more rounded view of life than the mere economic technocrats can bring to the procedure of governing. This does though require that geographers, classicists - if we are to pick just two from the list of possible courses of study - regard history as what it really is, a list of mistakes not to repeat. Rather than what we’ve had which seems to be the view that we should repeat the stupidities of others.

Seriously, what did anyone think would happen with a price cap at the retail level and free floating wholesale prices?