Even if people made rational economic decisions, the market price of electricity doesn't reflect its cost to society. The difference between the social cost of consuming power and the price individuals pay for electricity is huge. Utilities are (for the most part) regulated monopolies. Governments can't raise electricity prices because such a move would be economically unpopular. Instead governments have to keep prices artificially low and then find different ways of reducing consumption. There's no real market for power. But people don't make rational economic decisions. They subordinate long-term rewards for short-term savings.