> libertarian fantasy
So what do you recommend? Mandatory lights/heaters/AC on/off times, so the power produced is actually used, and the power needed is actually produced?
The british have the problem that during a football game half-time, a bunch of people start their tea kettles at the same time, and there is a relatively huge spike in electricity usage... this means, that the electricity providers have to plan for this and import electricity and/or shut down other cunsumers for those 15 minutes. Now imagine an unplanned half-time, without the time to prepare, and a magnitude higher changes, that happen suddenly (eg, three/ice brings down cables)... there's no way to predict everything and deal with every problem.
What variable pricing does is, that it gives incentive to consumers to use electricity when it's cheaper and not use it when it's more expensive. For homes that means washing clothes in the evenings and on sundays (cheper electricity here then) and not during peak usage hours, and for industry that means shutting down the highest consumers when there is not enough power available, and having them use up extra power when needed.