Poor planning and increased demand left California in the dark

California suffered frequent power shortages just over a decade ago, while it was deregulating its electricity market. The problems resulted from a poorly executed deregulation plan.

The American west coast state followed the UK’s example and began liberalising its market in 1996. California was facing a rapidly increasing energy demand and did not encourage excess production.

That led to utilities charging more for power. A massive outcry ensued, but the state’s two major utilities were in severe financial difficulties.

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Before they could be bailed out by the state, the demand for electricity soared.

The power companies refused to sell the state utilities power in case they were unable to pay them back. It led to frequent power cuts.

TOM PETERKIN

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