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The theory is based on the assumption that all of the forces are
CONSERVATIVE:

W. Panofsky, M. Phillips, Classical Electricity and Magnetism, Addison-
Wesley, Reading, Massachusetts (1962):
p.96: "By assembling these charges we have changed the energy of the
system, and since all of the forces are conservative, we can identify
this expression for the work of assembly with the energy of the
system."
p.102: "The resultant energy expression is nevertheless general, since
no nonconservative forces are involved."
p.103: "We must remember that the only physical fact underlying this
discussion is Coulomb's law, the remainder of the discusion being
mathematical, and therefore we cannot expect to obtain any physical
concept regarding the mechanical interaction of charges which will add
any physical facts beyond Coulomb's law."

Yet the fact that NONCONSERVATIVE forces are unavoidably involved is
implicitly taken into account:

W. Panofsky, M. Phillips, Classical Electricity and Magnetism, Addison-
Wesley, Reading, Massachusetts (1962):
p.100: "Thus we cannot equate the increment of the work done... to the
increase in total energy, since heat transfers are also involved."
p.115: "Therefore the decrease in force… cannot be explained by
electrical forces alone."
pp.115-116: "Thus the decrease in force that is experienced between
two charges when they are immersed in a dielectric liquid can be
understood only by considering the effect of the pressure of the
liquid on the charges themselves. In accordance with the philosophy of
the action-at-a-distance theory, no change in the purely electrical
interaction between the charges takes place."

Pentcho Valev
pvalev@yahoo.com