electricity is an essential service
, it's crucial to have regulations in place to curb the market power of large corporations. When only a few companies have ownership of all the power plants, they are able to exercise market power and raise prices as they see fit.and implementing average cost-based pricing can curb issues of market power and high electricity prices.
A gradual approach toward re-regulation could involve integrating the costs of newer power plants into the regulated system while terminating the power pool market with the retirement of older power plants. A properly regulated market would not see power prices increase the way they did this past summer., electricity prices were capped at 13.5 cents/kWh from January to March 2023, even though market prices were approaching 33 cents/kWh during that period..