Centralization is always a bad idea. Even if it "works".
Centralized power grids make everyone vulnerable. If everyone creates or captures their own energy, and I lose mine, my neighbor probably won't. If I have power and my neighbor doesn't, I'm available to help them out. When the whole region blacks out, you'd better have alternatives because no one near you who is dependent on the grid is going to be better off.
Centralized bureaucracies and governments become tyranny. Controlling life through force and ignorance. It's better if everyone can take care of their own stuff.
Centralized defense- police and military- become tools of the tyrants. They defend those who are the problem rather than "the public" they are supposedly responsible for defending. Everyone is better off if they take responsibility for their own defense, and then help others who are helpless or worthless when they can.
If there's only one food distributor, starvation is likely.
If there's only one "approved" source for anything, you're vulnerable to shortages or manipulation.
The more paths to get to where you need to go, the better off you'll be. The inclinations of those who believe in governing is to cut off all paths other than the one they control. Then, when you need it the most, they can cut that cord, too.
