Of course, but this is not a free market because no one else can enter the market to sell electricity and compete with established firms.

You failed to address the fact that taxation is still theft. When someone takes something from you without your consent, that, by definition, is theft.

Taxation is theft

That's for the market to decide, not the government.

false, you only have one choice because your government doesn't let others compete to serve you.

Fair point that makes sense.

they aren't limited to just hydro, there are many other ways to produce energy besides a dam

If they were turning a profit on energy, like they should be, then yeah, someone would be there to service their demand.

Ah so that's what real communism is like.

In a free market the suppliers would seek to meet demand because it is profitable to do so thus reducing shortages.

If they are making money on selling electricity, then why wouldn't they want to sell more of it?

If people can't afford to buy the music, then simply making a copy of it hurts no one. If people were downloading instead of buying, that would be a different story. We are circling back to the late 90's and early 00's