Energy economists and economic liberalism

Energy markets in many countries have been extensively liberalised in recen t years as part of the revival of market economics. However, though 'everyo ne may believe in markets now', there are differences of opinion about what constitutes a competitive market. The perfect competition paradigm persist s and leads to demands for state regulation to counteract 'imperfections' a nd failures'. Energy economists should look more sceptically than they gene rally do at these calls for regulation, most of which have little to do wit h the Public interest ': in the long run the accretion of regulation may, l ead back to extensive state control.