E63: Europe’s electricity market: the scam of the century?

Winter Is Coming…and Europe is facing a full-blown energy crisis.
Power companies are hiking the price of electricity, making a tough winter even worse. And this time, it’s not just the poorest who are affected. The middle class is also feeling the squeeze.
How much of this is due to how our politicians have set up Europe’s energy market, and how much to corporate greed? What other factors are at play? And how can we get out of this mess?
Our panel, including Yanis Varoufakis, Julijana Zita and Erik Edman, investigate. Join us live and send us your comments and questions!
0:00 [Introduction] Mehran Khalili
2:08 Yanis Varoufakis
25:56 Johannes Fehr
30:55 Questions and comments from the chat
31:31 Julijana Zita
38:31 Dusan Pajovic
42:53 Erik Edman
49:21 Defne Dalkara
51:57 Yanis Varoufakis
56:08 [Conclusion] Mehran Khalili
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#energy #electricity #gas

[@adrian_V99]

The market's goal is to increase profits not to reduce costs . if government does not reduce ,or at least cap costs, no one else will. Keep producing videos , Yanis. Thanks.

[@bazd]

Of course when you go to a market to buy goods the seller wants a profit. However its done in such a way that customers have very little choice. These companies that sprung up as competition were a sham and have went bust!!! I will give you an example data protection normal people think its for them but its really there to stop prying intelligent eyes looking at the corporations/big business.

[@vebdaklu]

Whenever I hear someone telling me that markets will reduce costs or make things more efficient, I wonder - when has this actually happened? As far as my recollection goes, prices have constantnly gone up, and the only thing that may have went down in price is old technology - but that is not really "efficient" when you need to wait for years to be able to afford something others had years ago, is it? And as far as efficiency, I don't see goods and services do anything but multiply, breaking up a single service into multiple ones, so they could be charged separately for more profit. Yet people today are like zombies, but instead of repeating "brains", they repeat "markets will save us".

[@superdog797]

"The market" does not have goals - it's just an organizational structure. Individuals have goals, not markets. If your logic is that markets by their nature tend to maximize profits and, therefore, it is fair to characterize them as "having the goal" of maximizing profits, then by the exact same token of logic, you have to also admit that the "goal" of the market ALSO is to reduce costs, because, in fact, that is what free markets do - they reduce costs via competition. More importantly than the selective logic you seem to apply though is the fact that you're completely wrong. Markets by their nature seek out the equilibrium point of supply and demand (source: introductory economics class). Profit maximization - which you erroneously ascribed to markets - is not the product of MARKETS but of MONOPOLIES, i.e. that which is the anti-thesis of a free market. Regarding your second assertion - that if the government does not reduce costs nobody will - I think you need to learn a little more history and listen less to propaganda and rhetoric from Marxists. Have you heard of OPEC - you know, the coalition of GOVERNMENTS that monopolizes global oil prices? Have you heard of Standard Oil? You know, the private oil giant from the 19th century? Read the Wiki on Standard Oil: "Standard's actions and secret transport deals helped its kerosene price to drop from 58 to 26 cents from 1865 to 1870.[17] ... Competitors disliked the company's business practices, but consumers liked the lower prices." In other words, Standard Oil as a private entity in a free market cut the price of kerosene in half, in spite of all the accusations of it being a capitalist monopoly gone made. Opponents stated they were unable to seriously compete against standard because of how cheap its oil price offerings were - literally a complete reversal of your description. Far more importantly though is the much larger mistake you made when you said that if the government does not "reduce or at least cap costs" then nobody will. Of course, the whole problem here is that the government cannot reduce the COST of hardly ANYTHING at all - the government has the power, because of its economic monopoly status on all transactions, to be able to refuse to PAY the costs, but it cannot reduce the ACTUAL COST that it takes to bring a product to market. All it can do is shift the cost to different people forcibly. The people who can actually REDUCE the costs of goods and services are free market private individuals who innovate and drive prices down (like Standard Oil), as well as the inevitable reduction in prices that occur in a free market equilibrium, assuming the government promotes a free market and not monopoly favoritism, or uses its own status as a monopoly to participate in what would otherwise be a free market. So basically you seemed to get everything backwards and wrong.

[@superdog797]

@@vebdaklu The market has reduced prices and costs so many times throughout history you seem to have totally lost sight of it, the obviousness of it being so blinding to you you fail to realize it being there, like a fish being in the water but not knowing it's surrounded by water. To take one single example out of a bazillion, Standard Oil reduced the cost of fuel tremendously: "Standard's actions and secret transport deals helped its kerosene price to drop from 58 to 26 cents from 1865 to 1870.[17] ... Competitors disliked the company's business practices, but consumers liked the lower prices." -Wiki, Standard Oil

[@jedics1]

Its the same in Australia, we spent decades building things like an electricity grid and a single government decides to sell it. They have sold out their own people from their own country and its caused some of the highest prices in the world. We have some of the largest gas reserves in the world but somehow we have to pay international prices for it. We have a government filled with self interest, without tight regulation this is what happens to all large organisations.

[@LiLBitsDK]

and that right there is the SCAM of a life time, paying much higher prices for something the country have itself...

[@12235117657598502586]

I now don’t want the mass populations to understand why their energy and food bills are suddenly so unaffordable… BECAUSE WHEN ENOUGH PEOPLE SUFFER BECAUSE OF THE WEF / GOVERNMENTS HEARTLESS BAD DECISIONS, THE MASS RAGE TOWARDS THEM WILL BE TRUELY TERRIFYING! 😡

[@LiLBitsDK]

@@12235117657598502586 and that is what we want... we WANT them raging... to rip off the heads of the scumbags ruining our lives with their greed and NWO and TGR and WEF and other BS...

[@jensholm5759]

Thats right. EU also has recommended privatisations of almost everything. It has heklped us but also has backfires as You write it. Your gas follow the world market prices because its a world thing. So for You and fx EU we should have a more Govermenthal control. We actually has a danish model for it. It mkes Our hospital and health care systems better then USA even to half the price. The State own the Hospitals and the healtcare - AND THE WE SOUTSURCE most things. By that the big private companies all has to compete. It works fine for my medicine. When my doctors order and I buy it, its a ruotine demand, that You are anytime is offered the cheepes version. The pharmacists has an automatic computer list for it. Most kinds of medicine are in many copyversions being exact the same. Competing is fine but it should be to be best to the price. As Obama said: Yes we can. So yest we should. I thought You has too much sunshine there :) Maybee You could export some of it :)

[@jensholm5759]

@@12235117657598502586 Parts of it is the normal apnic reflexion. They put an extra dollar on everything to feel more safe. I see no real inflation. I see prices go skyhigh and then will decline to half of that after some time, so here in Europe we has to be used to a permanent minus 10% decline and go from there. We have a high level to ecline from. Its much worse for those which has less money for food and energy.

[@kamakaziozzie3038]

This guy is spot on. Not enough people are aware of the true reasons of the surge of energy prices.

[@sten260]

this guy is absolutely wrong, if we had some sort of cap on energy profits, nobody would produce energy anymore. There is much higher potential for profit in other industries that aren't price capped, all the capital would flee from energy industry

[@Anam0408]

@@sten260 Time to wake up, its about control .

[@sten260]

@@Anam0408 no it's about people whining and politicians being weak and make all the wrong decisions

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@DaSkonk]

@@sten260 what total, utter and absolute twaddle - give over!

[@adangerousidiot]

Why do people spend so much time watching total crap on the TV, when you can learn what is really going on and spoiling our lives. Excellent channel.

[@AJ-hi9fd]

I spend too much time digging for the truth, it doesn’t make me happy, may be that’s why people listen to the crap.

[@gwills9337]

It's mostly a hangover from the "TV era". Boomers and even Gen X grew up believing everything they heard coming from that box. If you were born in the mid 80s or 90s you know better (or should by now lol) there's a real demographic divide pre/post 80s

[@R12446]

Mainstream media is like worthless newspaper given in your hands you have two options be kind and take it or just throw it yourself,but do not read.

[@pawlas00]

answer is simple and scary at the same time : people dont wont to consider option that they been lied to!!! this is very well known psycological fact to those who desin this program called politics and goverment. the truth is heavy and not nice as human nature is people are rather stay in their comfort zone insted to get their ass to work and do something produktive - energy consuming!!

[@edwardjones2202]

People feel the world is impossibly complex and the chance of change forbiddingly remote.

[@marktomasetti8642]

Most of us sleep-walked into our cages, now we are frustrated that we have very little power. Thanks for shining a bright light. Rather daunting.

[@keylanoslokj1806]

Yeah because freedom costs in pain and time. People would surrender everything for the illusion of comfort

[@12235117657598502586]

I now don’t want the mass populations to understand why their energy and food bills are suddenly so unaffordable… BECAUSE WHEN ENOUGH PEOPLE SUFFER BECAUSE OF THE WEF / GOVERNMENTS HEARTLESS BAD DECISIONS, THE MASS RAGE TOWARDS THEM WILL BE TRUELY TERRIFYING! 😡

[@glueplay]

No, we were born into our cages. The system has been there long before we were alive, much less aware of the oppression. People have been fighting for a long time now. There have been many socialist experiments that collapsed and reformist capitalism is dominant in Europe. I hope we can achieve socialism in this century, the thing that's gonna make the difference is radical left rising all over the world - even in the US - and they are slowly fading away from being the biggest economy on the planet. Capitalism's death is long overdue, it's been on life support for over 100 years now.

[@RickB50SS]

The unconscious working class believe the ruling class propaganda or nothing at all. Racing, Football, monarchy, booze, happy hour.

[@BRM101]

Amen

[@BRM101]

Yanis Varoufakis is a fine gentleman he has been speaking the truth on money and political matters for years, bless you Yanis 🙏🏻

[@BRM101]

Amen

[@The_Touring_Jedi]

He speaks only but have no solution...we already know that corruption scale within Goverments are epidemic...nothing new. This is all ideological bullshit and non of these know solution. Especially this guy Dušan from Montenegro...green liberal brainwashed moron. He want's " green hydrogen" as future and Wind turbines and sollar panels...how delusional can one be.

[@ab-ym3bf]

🤣🤣🤣. A failed politician with failed policies making a living by commenting. Sorry, he might get the occasional thing right like every other person, but he is just another narcissist politician.

[@domestique3954]

@@ab-ym3bf Where’s the reason for your arrogance?! What did you achieve for the people? I suppose you even didn’t understand what Yanis was explaining....

[@ab-ym3bf]

@@domestique3954 don't see any arrogance in having a different opinion. Please look up the definition of arrogance before accusing someone. "achieved for the people"? I think that one is easily answered: nothing. Just like Varoufakis. You suppose wrong, a hint is in my OP. Any more unfunded personal attacks on someone that you don't know and just happens to have a different opinion on a person you agree with?

[@irishguy6544]

They attempted electricity deregulation in California in the '90s and the result was the Enron scandals which involved price spikes, blackouts etc etc. It was found to be a completely unviable model and was abandoned. When will the Europeans realize they are running the same dystopian model? Thanks for that Yannis explained it very well.

[@qwertyuiopzxcvbnm9890]

Europeans may run the same stupid model but there are also many other factors that explain European problems. How do you think that other countries supply energy to their people? By legally fixing power plant profits to 5% to 15% or something (like Yanis said)?

[@hotdog9262]

the enron scandal was an actual deliberate massive scam attempt. not very comparable with potential normal state regulation/deregulation issues, afaik the european market is pretty regulated. the main problem is.. not enough energy is produced in total, which opens up for desperation and dubious companies taking advantage of the people. imo nations not working towards supplying themselves of electrical energy is not "a scam" its self inflicted pain. literally any nation can do it if the political will is there. the voters collectively should look themselves in the mirror for their problems

[@TterminusS]

@@qwertyuiopzxcvbnm9890 Yea there are a few solutions, some maybe better than others. One would be fixing of profit margins. The other would also be abolishing this stupid idea of energy auctions. It should work like most other markets. The plant owners should mkae the energy grid owners an offer and then they should see who can provide the electricity the cheapest and still make good profit. That is how a market normally works, at least in a system with a non-infinite demand.

[@qwertyuiopzxcvbnm9890]

@@TterminusS Thanks. It is a rather complicated topic but what you just described actually sounst like the auction system. The essential part of the auction system is that every day late in the morning the auction determines which power plants are going to provide the peak load of the afternoon to the energy grid. The power plants with the cheaper bidding prices are those that win and provide it

[@TterminusS]

@@qwertyuiopzxcvbnm9890 Well the way the guy in the video explained it was the other way around. He said that the highest bidder (the one paying the most for the energy) will get the energy (well, in the simulation). So if I own a part of the power grid, I bid to a plant owner, and then all other power grid owners can chime in and overbid me. This system would lead to prices getting higher and higher (like on ebay, where people bid and you end up with way higher prices than the product would normally cost). So did he describe the system (in the video) incorrectly? Which one is true? Do the grid owners overbid (for the highest price) like a classic auction for the plants to supply them or do the plant owners underbid for the grid owners to take the energy off their hands (the reverse of a classic auction)?

[@teugene5850]

Yanis actually keeps me sane during these insane times... thank you.

[@adrianmacfhearraigh4677]

The government in Ireland recently announced a surplus intake thanks to its amazing fiscal policies and management of government finances....Or should that be..... Isn't it amazing how a scamming market makes governments appear so good and are exemplars of governance in a society stressed by rent rates, poor health and public services, creaking electricity supply system but they'll cling to the statistic that unemployment is at its lowest since the heady days of that myth called the Celtic Tiger. Headlines have been written recently that Ireland's economy is thriving even when wind energy electricity suppliers have extracted an unethical 40-50% increase from our pockets that haven't experienced a similar inflationary increase. As Yanis states, EU member governments are enablers for this scam. Governments that promoted the EU on being the provider of more jobs and a higher standard of living. How the illusion has shattered.

[@Rossion64]

💯

[@fredatlas4396]

And thatcher and the tory party started and enabled this here in the UK. And our tory government since 2010 are still enabling the privatised energy companies, railways and water providers to rip us off, it's called profiteering and corruption

[@cigh7445]

60% of people didn't even benefit from the Celtic Tiger, sure the other 40% did, and those, the 10% and the 1% who were already wealthy before the Tiger, positioned themselves to make billions from the opening up of the country to unregulated market forces. To hell with 'neoliberalism', deregulated markets, free reign of the banks to play roulette, the worship of big data, to hell with Reagonomics, Thatcheromics, Clintonomics, and to hell with the elites vision of 'modernisation'. Their obsession with 'modernisation' and their religious devotion to 'globalisation' and 'the almighty economy' at the expense of everything that makes a nation a nation is sickening. No wonder the young Irish are beginning to speak with Americanised accents, we're stuck between the traditionally British Dublin upper classes (whose families kept their wealth after independence) who still have national institutions like RTÉ in their D4 neighbourhood, the new world rulers of the United States corporations, and the EU who are also unfortunately all about privatisation these days. But who have we become? What input do our youth get that isn't from either Dublins RTÉ or the US medias? Parents let their kids sit in front of the tv and soak up this shite all day. Only parents and family can pass anything authentically Irish to their children unless they are involved in local sports or music, community. It's no bloody surprise that Ireland is the most centralised country in Europe, just look at where the money and influence has remained since pre-Independance days. But now Dublins psuedo-Anglo-Irish elites themselves don't know (or care) what they are or what becomes of Ireland as long as they get to keep lining their pockets. You can trade with other countries and their corporations without allowing those corporations to take over the world to the benefit of the new elites. The problem is if only one country does this then the corporations just take their business elsewhere and nobody does business with that country and the media would suspiciously vilify them for being 'nationalist/protectionist/anti-globalisation/'rogue State'/backwards

[@fintan9705]

And then today you see headlines like this, "Taoiseach says 'much higher' ESB dividend to be taken as after-tax profits hit €390 million", which onthe face of it looks great but when you dig into it it becomes almost like trying to keep your eye on the pea in a shell game played by an octopus.

[@michaels4255]

Wind is only viable with backup, which can sometimes be hydroelectric, but in most locations must be natural gas. So higher natural gas prices mean higher operating costs for wind electric. You are only scammed in the sense that you were lied to about the true costs of "renewables."

[@freebird7017]

The market does regulate prices better than a government BUT only on non-essential goods and services i.e. when people have a choice to do without. Essential services - electricity , water etc must be centralised. Again here, we rely on having a government of intelligent uncorrupted people.

[@Achrononmaster]

That's a bit wrong. Payment layers and regulations need centralization (to avoid races to the bottom), but not production. Production only needs worker ownership. Centralizing the payments layer for resources we ought not be using can be achieved with rationing or universal carbon credits. In a war time footing the population always accepts rationing, and we are in fact at war with the climate, if we do not surrender we'll have to ration high GHG emitting energy use.

[@Achrononmaster]

Also, markets only ever determine _relative_ prices. The monopoly currency issuer (governments and their licenced banks) set the absolute price level, always, whether they know it or not (they tend to not know it).

[@pw847]

Well said

[@rodneykiehne5212]

No essential service should be in the hand of the most greedy.

[@superchuck3259]

@@rodneykiehne5212 Is the government the most greedy? Doesn't the government get paid first from your paychecks?

[@marlenejones1433]

Yanis is brilliant and helps us understand the scam by governments and energy companies.

[@BorisNoiseChannel]

Could you explain to me, Marlene; why you take what this guy is saying as the truth that _"helps you understand"_ what's going on, and not what is said by someone else? I mean: what is it that makes you believe one source over another? And: do you ever fact check what is said by this guy, for yourself? (I sincerely like to know; Thanks in advance for answering)

[@sandpiper9288]

@@BorisNoiseChannel What's your opinion on the crisis?

[@Szaboo92]

@@BorisNoiseChannel Is it perhaps due to reasoning? What youre saying is true everywhere, and I think its a very valid point. Why should one believe what is said or written by someone? But thats true in the EU parliament, on youtube and on the street as well. We never know who's telling the truth, we can only try to build a picture of truth in our heads. We probably never see the true and complete picture of truth.

[@jackjones9587]

What, the EU doesn't have the best interests of it's population at heart? No!!! But don't worry it's not the fault of the EU it's that bad old, dead socialist hate figure who left office in 1990 who is to blame for rising bills in 2022 🤣😂🤣😂

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@mar1usc]

In Romania, we have multiple sources of energy, the most "Romanian" one is HidroElectrica (which still controls all the dams). The energy price per KWh from HidroElectrica is 0.28 RON (approx 0,057 euro) But Hidro has distribution controlled by European companies like CEZ or EON or Enel (not Romanian). From the source, employees (not official), the distribution company, let's say, CEZ is limiting the amount of power that the dams can produce to keep the price high. So the dam technical staff (the operators) must run some generators, as generators, and the others as motors, and consume the power they produce, to not let the power go into the network. (to limit the power going to the network as CEZ told them). This is a waste of energy, clean energy, and cheap energy. I am sure that this is not happening only in Romania. I don't understand why there are not some priority of energy sources in place. to stop the dams during the day, consume solar, then in the evening when you have a peak, let the water flow at maximum, consume hydro more, and if need more, consume coal or other sources.

[@ahillaeus]

What you want is so high in money that no one will ever do it. To stop and start a power plant is so expensive that it will be done only in very extraordinary conditions(like wars or natural disasters).

[@elisabetbarth5573]

From Norway here. We are very angry! We had 100% hydropower here but the politicians gave it to the Germans and uk to increase the price. So we could have the windpower-swindle and destroyed nature too. This constructed system the green politicians made emtied the big water-storage-lakes ( intended for several years power use.... they are enormous )built decades ago and paid for by the people... So we won't have enough power here in Norway to get through the winter. We have europes most expensive electricity now, and everything here is driven by electricity. Heating houses with oilburners were forbidden a few years ago and costly to remove. Renewables and climate change are one big very destructive swindle! And the power grid need big generators to be stable. We need Europe to start the old and build new nuclear power plants. So Lindtner isnt that stupid. The problem is where the money actually ends up. Our green goverments last 9 years ( "conservatives and social Democrats") care more about the windpower-swindle than producing power. So instead of modernizing the old water- turbines ( cheap, some of them are from the 30s, and does not destroy nature, can increase power output a lot) all we hear is "wind wind wind on land and offshore". Guess who pays! We are angry!

[@whatwhat3432523]

Water is also a renewable. And its not green politicians who have made electricity more expensive in Norway, its privatization in terms of the energy companies being able to make their own decisions without government approval. The connections to Europe are old, gaspipes and cables have been there a long time. I worked on ships that laid almost all of them. After the energy companies got autonomy, they built more cables to europe, and since they earned more money sending power to Europe, and still does, they have emptied the reserves in the south and east of Norway to make more money. And because it have been a lot of dry weather in the south, the reserves havent been able to be filled. Its just classical capitalist greed performed by unregulated corporations. Who unfortunatly are actually owned by the government. So the rightwing coalition that sat for 8 years, certainly is a big part of this.

[@royaldecreeforthechurchofm8409]

Why are you blaming renewables. Renewable is the cheapest source of energy. If you watched the video you would understand privatisation and politicians that scammed the people.

[@HURDUZEU]

Great comment, Elisabet Barth

[@hotdog9262]

@Poteri Forti the green energy movement can certainly in part be blamed for this crisis in europe. they have worked against nuclear power for a long time, and even pushed for the shutdown of working reactors(!) in europe. they don`t have the mental capacity to understand a real world green shift needs time..decades. and don`t understand nuclear is green and stable..energy. they have also worked a long time to be more dependant of russia for energy. which is quite frankly idiotic. it have always been idiotic, and after krim 2014 any adult should have been able to understand this simple reality

[@mikaelgrad5330]

This is the best comment. Are you a engineer?...The green power (wind and solar) can max be 20% or you going to destroy the grind.

[@ecoshah]

In Canada, everything is designed so that even if you can afford and decide to disconnect the meters. water, electricity, cell phone and gas; you cant. You still have minimum fee and the meter stays. I am on a well and they have been desperately trying to get get me on city water. I refused to be leached like a dog. I have a building on a separate lot and wanted electric meter removed. The only option was to have them dig up and remove cables all the way to the pole at my expense. CAbles I had paid to install. Their response was they installed the first forty feet and I actually paid for the rest. They got it rigs all the way.

[@williamhunter3260]

I had the craziest dream

[@grazynkatodisco4916]

Mafia tactics.

[@andreyansimov5442]

I didn't know there are criminals in energy companies in Canada.

[@foxdenham]

At last, smoke and mirrors simplified and made transparent. Thank you DiEM25. The problem is that most normal folk feel politically impotent in the current zeitgeist, where bare faced corruption is either denied or obfuscated. Simply put, the Energy Companies, Politicians and Oligarchs are taking this piss on a monumental scale!

[@pauleaton3578]

This needs to be spoke about on the mainstream media. Thank you for your knowledge and insight. Excellent Yanis.

[@BorisNoiseChannel]

Mainstream media would generally Fact Check it first, and so should you, instead of taking a you-tuber's word as _"knowledge and insight"._

[@christiekaye5013]

Msm is a bunch of lies. You sound like you could benefit from learning about discernment. Any reasonably smart person checks various sources...

[@sandpiper9288]

Mainstream media is run by 1 crooked old man.

[@ianandrewoconnor9032]

Ho ho ho, we can’t get honest reporting from MSM, we have just had the latest turn in the UK Conservatives give more to the rich in a couple of years labour will reverse it all. Time to waste your vote folks and vote for a centre focussed political party.

[@ianandrewoconnor9032]

@@BorisNoiseChannel MSM in the UK used fact checkers turned out the fact checkers were spouting rubbish.

[@hirazakhan]

In short: cost is higher because of privatization, market auctions reward highest bidder, cost + capped margin is the proposed solution, but corruption impedes that.

[@superchuck3259]

Politics make the prices high!

[@janeblogs324]

I wish every video had a summary in it like this

[@garywalls5181]

Me and a friend had this exact conversation this morning.We knew we were being shafted.We knew it was unethical.Maybe even unlawful.But weren’t quite sure if the mechanics.Thanks to this vid we are now better informed.Kudos. :)

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@DardanRamabaja]

Absolutley true. There is enough electricity and oil on the market, just the prices went up.

[@onetwothree4148]

And in Europe the prices went up because their two largest gas providers were state owned companies- Russian and Dutch. The Dutch stopped supplying gas to Europe because it doesn't matter to them if Europe has a shortage. If greedy companies owned the Russian or Dutch oil fields, there wouldn't be a shortage right now. Instead Europe has a gas shortage because politicians from two countries have no reason to sell them gas.

[@kondirecs]

Nikola Tesla was onto free wireless power to all. J. P. Morgan was furious; how would he ever be able to put a meter on that? There's absolutely no interest in inventing better energy solutions, letting the customers be self producing with solarpanels, or at any point taking advantages when it comes to electricity. They have slowly over the last decades changed and increased our need for electricity (electric cars, a lot of industry has converted from oil/gas to electricity in manufacturing in the name of sustainability, electrical devices for all sort of usage - most run on batteries etc) and even if every single person cut down their usage - they just keep raise the price. Why? Because they are controlling the meter.

[@atm0t5]

In spring I got the first letter from my energy provider company about the raise. I was shocked, how is that possible when I'm buying eco energy? they gave just this same answer Yanis just explained about network and market prices, a pure fraud indeed, worst is that no media is covering this, well as any other fraud we are victims of.

[@esecallum]

eco energy costs 3 to 6 times as much...wake up

[@gratefulkm]

@@esecallum Seems your the own believing , You probably believe half your brain is dead as well

[@JackFou]

@@esecallum No it doesn't. Solar and wind are the cheapest options in terms of $/kWh of capacity, cheaper than fossil fuels, even when you don't account for the price of the damage of CO2 emissions from fossil fuels.

[@michaels4255]

@@JackFou First, no damage from CO2 has EVER been observed or measured. It is all prophesy, and just as faith based as any other prophesy. Second, wind is so unpredictable that it must be backed up a source that can be turned on or off as needed, and in most locations that means natural gas. "Cheapest options" is a myth created by inadequate accounting. Look at Germany: the biggest renewable share in Europe, AND the highest electrical generation costs in Europe (partially disguised because EU requires lower cost producers to subsidize higher cost producers). This is not a coincidence! A big part of the problem is that politicians, when they have any advanced education at all, are almost always immersed in the thought world of literary intellectuals with no grasp of the fundamental principles of engineering or the hard sciences and are unaccustomed to thinking quantitatively except in the most superficial of ways. And then these morons in public office, who are trying to make decisions about things that they not only don't understand but are not curious about either and therefore do not scrutinize critically, although they are good at memorizing talking points, can easily dupe the public with half truths and if necessary outright lies because, as Churchill observed, "The best argument against democracy is a five minute conversation with the average voter." (Although I would say that Churchill ironically owed his success to the stupidity of the average voter!) Unfortunately, the average voter usually prefers public servants who are only moderately more intelligent than he or she is, because that is whom he or she can relate with emotionally, and sometimes not even that. Just like at Joe Biden and Kamala Harris in America, Liz Truss in the UK, and Analena Baerbock and Herr Habeck in Germany. These people are dunces.

[@agffans5725]

@@esecallum I live in a 95 square meter house in the outskirts of the 2nd largest city of Denmark, the central heating bill is slightly lower this year than last year, most likely because I had new 3-layer windows installed, but the heating cost is $54 in pre-calculated instalment payments a month (so, both winter and summer) while the electricity bill can differ a bit but is in the same range, it should be said that our providers neither use oil or gas, but only renewable energy.

[@petersipos4728]

Mr Vaoufakis is right. He finally tells his harshly honest opinion..I always felt that he was way too reserved and way too polite towards EU autocrats....and he kept much of his thoughts for himself to stay 'politically correct'

[@LuisAldamiz]

LOL, do you remember how he scolded the whole Eurogroup when he was minister? I don't always agree with Yanis but I have great respect for him in any case.

[@martefact]

Yanis is a LEGEND!!! Thank you for teh most infuriating and enlightening 23 minutes I've ever enjoyed regarding the political and corporate crimes I can already smell but can't articulate. Until now! Perhaps someone could volunteer their skills to create really simple infographics to delineate that 23 minutes of choking reality. Pure Gold Yanis thank you!

[@jaketan5172]

Yanis seems to assume that people in positions all knew what they were doing. There is a possibility that many of them do not know what they were doing - that's a more dire situation. Who put them there?

[@devonseamoor]

@@jaketan5172 There's a certainty in that many people in positions that matter, are obeying a narrative that is sold to them, not wishing to lose their positions. The level of bribery, enforcement, and threat of a smearcampaign is high. We've seen it during the pandemic, the doctors and nurses who spoke their mind were all moved out of the way.

[@claudianreyn4529]

We live in a universe where the energy flows to infinity compared with our size and needs! Yet, we live in a total control of a corrupt elite who limit us and exploit us on something that basically should be for free.

[@diosamurcielaga9418]

Thank you Yanis for the 23-minute awesomely clear explanation, thank you very very much.

[@iamrocketray]

So we(the UK) produce Oil(from the North sea) does that mean we the user pays less for our oil(as they promised), NO, NO, NO, They sell it on the world market which is loads of profit for the producers! THEN we the end user, have to pay the going rate on the world market for our oil, Gas, Electricity so WE(the end user) get absolutely no benefit from OUR North sea Gas and oil. ON TOP OF THAT before we even get any Gas or Electricity we pay a daily standing charge just for the privilege of letting them pipe the gas and electricity into our homes. IT'S A RACKET, we use 5% of Russian gas, yet the price of gas and electricity trebles because of a war between the Nazi's(Ukraine) and the Commies(Russia), Doesn't anyone smell a rat? Because I think it stinks!

[@manupainkiller]

@@iamrocketray It is no longer "YOUR" (the people's) country - I believe this is quite obvious. I will also not debate further than this ; you will have to find your answers yourself, if so desired.

[@MikeKay1978]

ecept he was wrong when it comes to cost of running a windmill.

[@muf6861]

Oh my god, it all makes sense now. Thanks for explaining how this insanity of electricity prices works.

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@danieldaniel7724]

Thanks

[@GreenIsland38]

Hi Jiannis, brilliant ideas, would work perfectly, which is why the so called EU and the oligarchs will do everything in their power to stop it happening. My honest respects to you Jiannis, wish we had people like you in positions of power. May the good lord protect you and yours.

[@whoolawoop6817]

Thanks Yanis and all the others for breaking it down so clearly and helping us see through the biggest scams!

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@fnaust]

Great talk, congratulations Yianni. As somebody called Karl said 150 years ago: governments are just a committee to run the affairs of the ruling class.

[@Cl0ckcl0ck]

Next time he should look into what an auction is and how it works. He looks like a total dunce for not understanding a system and just immediately assuming it's a scam and corruption. What kind of auction would sell to the lowest bidder? The thing he describes (or tried to) is the EU internal market where producers and sellers of electricity can bid for produced electricity. Would he sell his house to the lowest bidder if he's going to sell it?

[@henryb1555]

Exactly. Nicely summarised.

[@DrSpooglemon]

Socialised energy is the only way forward.

[@KoDeMondo]

To me is just waste of time and yanni still missing the point while keeping running around in circles

[@robertholland7558]

A Dutch auction……..

[@geeianna7708]

Yanis is absolutely correct on how the energy market was created in the UK and then the EU (Single Market Act).

[@microfarming8583]

Its criminal if you ask me.

[@Cl0ckcl0ck]

What he fails to mention is that the bill to the consumer has the capped prices. At least that's the case here in the Netherlands. We'll be getting bills based on 1 jan 2022 prices. If in Greece people keep paying inflated prices then the problem is the corruption in Greece between providers and government. That's not an European problem but a Greek one. Here in the Netherlands we have a fine solution without going full soviet with complete state controle and regional and local 'committees'. Everyone is free to install solar and heat pumps in their own house (often with government subsidies) and people can just come together and set up a wind power company and bid on government determined wind park locations or set up a local windmill (not as free as he seems to think it is). Yanis may be correct in the steps taken but it only becomes a scam if you include/assume high levels of corruption and that's not a big thing in Western Europe.

[@microfarming8583]

@@Cl0ckcl0ck In UK they call it a cap but what the government is actually doing is borrowing the money to pay the extra above the cap and it will cost an incredible amount to the taxpayer and will have interest on it. Are you sure that's not the case in Netherlands too?

[@Cl0ckcl0ck]

@@microfarming8583 It's mostly a reduction in taxation on energy about (€10 billion). Main part on the side of the energy companies is that they won't be allowed to cut people off. Debtors unable to pay is the risk of the companies with the government paying €50 million into the shared fund of the companies to cover that risk. The companies are allowed to still function and won't be forced into bankruptcy by forcing them to sell below what they pay. We already had about a dozen smaller companies go bust because contracts in the Netherlands are usually set for years.

[@jonathanjoseph5600]

I wonder who will change the pricing mechanism first??? UK or EU.....

[@alexisgeo]

Yanis is so knowledgable. the only one who actually made me understand why all of this is happening with energy. Thank you again

[@jackjones9587]

Yanis is incorrect. Private or state owned is a distraction. Technology type is the driver of prices. Denmark has the highest priced electricity in the EU, 85% comes wind. France has the cheapest in the EU 80% comes from nuclear. To say solar and wind have zero running costs is absurd. The build costs, rare earth metal mining, maintenance, land owner leases, extra transmission and DNO network reinforcement works, reduced efficiency costs, battery storage back up costs, decommissioning costs. Sadly he has embarrassed himself in this debate.

[@hotdog9262]

@@jackjones9587 wind power have a lot maintenance cost attached to it. ofc liberal msm never talks about this or anything.. that works against their agenda

[@jackjones9587]

@@hotdog9262 Exactly

[@mrmutra569]

Yanis your a star..... Thank you so much for taking the time to investigate and then report on it.

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@asone9797]

I always knew It was a scam, but there were very well educated people who were there to tell us otherwise.

[@robertholland7558]

Educated? Or indoctrinated? 2+2=5!

[@mazg4707]

@@robertholland7558 exactly

[@devondetroit2529]

Just like covid

[@daveruda]

@@devondetroit2529 Isnt anti vaxx nonsense out of fashion now?

[@040040919]

i am educated and i love yanis and i am telling you he is 90% wrong on his arguments.

[@modarm]

Actually looking at the current situation this could play perfectly in to the hands of DiEM. Just don't get stuck focusing on 100% renewable because it has downsides. I think the Congos Islands is a perfect example of what is wrong when unbridled power has no boundaries. Yanis is right the present model is simply shocking for the vast majority of people and really needs an overhaul.

[@jensholm5759]

Thats not related at all. Denmark has a first class advanced ssystem, which already work all year around. So here its about replacing the dirty and expensive parts. Electricity is a very good border crossing system. Here its very easy. When the wind blows, we export electricity to them. When its not wa can effort to buy their fossil and nuke electricity. Another thing well known for the big TEXAS in USA. They have made a very big and good system for windpower, but they have forgotten, that sometimes there is no wind at all. They(maybee as You) has cut the net to their neighbors. You have to ave a complete replacer, when wind(and suun) produce nothing. Denmark is a windy area. 200 days a year we easy can poroduce for severak more millions then we are(5,7 mio). BUT 165 days we produce nothing. Wealso dont know whic days it is and if its one day here and there or maybee 14 days. So far the world and we cant store electricity for that. So the need for Congo and anywhere else is a complete package. No TV in 165 days is hard times:)

[@dreammfyre]

Same thing here in Sweden. We payed outrageous prices and now the government comes in a pays us a certain sum to cover up those crazy expensive months(but just a few of them, even tho the prices has been way to high for probably 2 years now). Which is like you say, them basically subsidizing this crazy system and in the end the oligarchs. The even crazier part here is one of biggest actors on our market(Vattenfall) is 100% state owned. How the EU should have solved this is of course to scrap this crazy monopoly like energy market system, or encourage it’s members to put caps on how much people can pay for energy, but of course they didn’t. The energy market(including oil) is the most post-capitalistic and neo-feudalistic of them all. Those lords will never give up that wealth. EDIT: I actually wrote this 10mins in lol I swear I didn’t just copy what Yanis said later.

[@AA-xs8mv]

Well done.

[@analizator82]

Big love to Yanis for this analysis. I admire your knowledge of reading this kind of plays by Govts. Your explanation was very good, 5am half asleep struggling with some flue and non native English, understood it perfectly. I'm looking closely at this movement. After recent years of looking what is happening seems like this is one part of the puzzle for Davos talks, The Great Reset or rather should be called The Great Slavery is not making me optimistic about myself or my kids in the future, but watching initiatives like this throw some spark of faith, but only a spark. The fact that oligarchs owns practically all the resources on the planet means movements like this one are like pests on the field and they can easily deal with that if this becomes any real obstacle :(

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@gowrypara3184]

An Amazing human being and a super intelligent economist/ political brain rolled into one - such a gift

[@joachimsantos1827]

How about converting lecturing into some type of "entertainment", like a tv competition ? It's the only way to tell people that they are "limited" without them getting "offended"...

[@pickindimm6847]

Pity he’s a lefty.

[@The-Cat]

@@pickindimm6847 I feel sorry for the woman that gave birth to you

[@mickwaters474]

Really. He thinks a wind mill makes electricity

[@JackFou]

@@pickindimm6847 The fact that some of the smartest minds of this planet, both contemporary and historically, are and have been leftists/socialists should maybe give you a hint.

[@Nevsw9]

Excellent. I love that Yanis offers clear strategies to address the problem.

[@devonseamoor]

Thank you, Yanis, for your insights and knowledge, not from books, but from experience, observation and shocking insights during your political career. It's accurate and precise, we're the idiots, so true! When will humanity have enough of being lied to, and bamboozled?

[@RusticRaver]

Us idiots, or us hostages. I think its too easy to blame consumer and make them feel bad as if they can do something about it (it has been happening a lot lately), in real few laws banning disposable plastic, ridiculous cars than consume 5x more, impose quotas on electricity... referundum on evrything, answer 50question 10min a week, feed that to the Artificial inteligence. I enjoyed chat but still what can I do about it except laws to regulate market.

[@jackjones9587]

Yanis is incorrect. Private or state owned is a distraction. Technology type is the driver of prices. Denmark has the highest priced electricity in the EU, 85% comes wind. France has the cheapest in the EU 80% comes from nuclear. To say solar and wind have zero running costs is absurd. The build costs, rare earth metal mining, maintenance, land owner leases, extra transmission and DNO network reinforcement works, reduced efficiency costs, battery storage back up costs, decommissioning costs. Sadly he has embarrassed himself in this debate.

[@RusticRaver]

@@jackjones9587 Yes I noted the xero running cost. I'm personally for the nuclear. Like you said technology is the driver. Some invention polute a lot for some time until they polute far less (like petrol car until electric). Get into nuclear , do ity properly and one day comes the FUSION instead of fission and you can bin all the solar panels of the planet, we will have plenty.

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@devonseamoor]

@@RusticRaver Oh how woke you are, refusing to even grasp a different person's opinion without placing one's own wall of opinions in front of it. You're a fool, assuming that it's about guilt, not about reality. There's a reality, out there in the light of day, not woke-ism based on the delirium of minds, where the majority of humanity doesn't pay attention.

[@brianwheeldon4643]

I am compelled to support DiEM25 in making this video. It is most important for people to understand the situation geopolitically, and internally to the Eu and individual countries. It was Yanis who said that it's Germany with a little help from France that rules the roost and makes important decisions. There are many good commentators to hear speak outside of DiEM25, they provide essential information, you likely know them. People like Vijay Prashad, Chris Hedges, Jeffrey Sachs, Jeremy Corbyn and many more. DiEM25 is right in there with such commentators, in my humble opinion. Thanks and thank you Dusan and Eric.

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@michaelmoore6287]

Excellent talk. Now I am starting to understand why subsidies on solar panels was removed in the UK. This has been a while in the planning.

[@jackjones9587]

Why do solar panels need subsidies if as Yanis says they're almost free to run? 🤔 Because Yanis is wrong!!! Private or state owned is a distraction. Technology type is the driver of prices. Denmark has the highest priced electricity in the EU, 85% comes from wind. France has the cheapest in the EU 80% comes from nuclear. To say solar and wind have zero running costs is absurd. The build costs, rare earth metal mining, maintenance, land owner leases, extra transmission and DNO network reinforcement works, reduced efficiency costs, battery storage back up costs, decommissioning costs. Sadly he has embarrassed himself in this debate.

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@zeldaharris6876]

@@jackjones9587 You are wrong - solar panels are almost free to run. They are not free to manufacture. The amount of redundant generation needed in the grid etc is not a running cost of solar panels. You are conflating a number of issues.

[@gpsoftsk1]

@@zeldaharris6876 I think the guy in the video is wrong about the solar. They are not free to run as they have a high investment cost. If green energy would be cheaper overall per unit the world would already run on green energy. If China would stop making panels from cheap energy and would start to make them in the EU at the current prices the solar panel prices would more than double.

[@enjoyyoursleep1]

All planned at least since 1913, perhaps even before that. I mean, is it any wonder that the titanic sank with a number of wealthy anti-establishment figures on it, namely John-Jacob Astor. and then 1913's Fed Reserve act comes along...the rest is history....That's my view anyway.

[@maxheadrom3088]

6:50 There's actually a possibility for a market in Electricity though it's very complicated to manage. In Brazil the privatization did not work but it was done because the country had funds for the required investments. The market is regulated and the State control prices - at least for domestic users. Here's how you have a market: Electricity is produced from different sources and consumption changes through time. Brazil has several hydroelectric power plants - the largest in the Southern region, a very large one in the northern hemisphere, several along rivers in the northeastern region, southeastern and central regions. Besides the hydro there are considerable contribution from wind and biomass. We also have a small set of nuclear power plants and several gas/oil power plants that are used when needed. Most of Brazil's population is in the southeastern region (Minas Gerais, Espirito Santo, Rio de Janeiro and São Paulo). Most hydro power plants are far from the region (specially if you weight in population density and GDP participation). Hydro power plants spend more water to generate the same ammount of energy if the water level is low. Reservoirs have their own historic series for rain fall. There's also a cost involved in transmission lines that include losses. Transmission lines' losses are proportional to the power transmitted to the power of 2 (x²). Here's the problem - sometimes the electricity from Tucurui is cheaper in São Paulo than Itaipu's because the rainfall regime in the northern hemisphere is different than the one bellow the tropic line. The transmission lines used will also be a function of consumption and routing the power is very complicated because those huge towers with long cables are transmission lines (they have complex impedance and oscillation/resonance problems). The product (Electricity) is wiggling electrons and there's no need for one grid for every producer to create a market. Having said that, it's complicated to manage and people are still trying to find decent ways to do it. We must also consider countries (I don't think it's the EU case) that need the infrastructure but have no funds to invest. BTW, from what I know, only Nuclear will save us. Solar Panels produce huge pollution (heavy metals). Wind power has a sever environmental inpact on birds and, most importantly, bats (bats are important polinizers). We must also remember those who consume most of the energy are industries. As an example: I live near the largest consumer in my state, São Paulo city - 10 million inhabitants - and also near the second largest consumer - less than 50 thousand inhabitants. 50 thousand people would need to take some very long and hot baths to reach the second position ... or they would need to have, in their city, the largest aluminum factory in Brazil. There's a guy in Brazil, a Professor at the Escola Politécnica from the University of São Paulo, who is a specialist on the subject and a Marxist (with a capital M - a guy who studied and knows Marx's theories): Prof. Ildo Sauer. You can't forget the bastards - these things are really costly to built. Nuclear Power Plants are really costly to install and will give return to investment only after a long time - are we willing to pay someone to finance these power plants? Nuclear, btw, goes very well with Hydro - Hydro will behave like a battery for Nuclear surplus energy during lower consumption times. Here's a link to an interview with Prof. Sauer - the subject is Brazil's energy problems and policy but hopefully it can help people to learn more about the subject. The interview is about how the Worker's Party (PT) ended up behaving worse than the previous administration (Social Democrats - PSDB) who they have been claiming to be neo-liberal. The file comes from the Institute of Electric Engineering from the University of São Paulo. Dot br sites are from traditional public universities in Brazil. www.iee.usp.br/sites/default/files/biblioteca/producao/2011/Artigos%20de%20Periodicos/sauerato.pdf

[@jaketan5172]

In some countries such as little island Singapore with near-zero natural resources, energy pricing is kept affordable. Not by ingenious ideas but by zero tolerance to non-compliance and corruptive behaviours.

[@egria]

Current situation in Europe - is pure political issue. U S A wants downfall of European region.And European "leaders" somehow agree to do that.

[@robertholland7558]

Renewable energy sources (ignoring the climate impacts) were to provide dirt cheap electricity, yet what we see is skyrocketing pricing. Something just simply does not add up!

[@historynerd6630]

This is the most important conversation to be held at the current time. Thank you all very much and some special thanks to Yanis fo his detailed information 👏

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@LucBoeren]

Hey there I deeply respect, well, obviously everything you guys do, but especially taking the time to include proper subtitles. Sending love from NL

[@DiEM25official]

Thank you Luc and you're welcome! Our fantastic team of volunteers takes care of the captions. They're the best!

[@SkepticalTeacher]

@@DiEM25official FYI: I don't know if you are aware, but deafness and hearing loss is the most common disability, but most people don't know this so they don't understand the vital importance of subtitles to so many people. It's about inclusion. Thanks for the subtitles!

[@tesslieb4040]

Oligopoly companies must be regulated because their mandate to increase profits for their shareholders prevails and if left unchecked will corrupt the prices . In Ontario Canada, the privately owned gas companies are regulated by an independent government Board who after hearing arguments from the companies and the opposing arguments developed by the Board Analysts who work for the public interest then set gas rates. It is a simple and effective independent method which works well. I worked for 6 years there and really felt that we helped to make the gas prices fair for the consumer. I was very surprised to learn that this system was not implemented everywhere.

[@TheEtrepreneur]

this "21 minute" explanation has a great point, that explains why mainstream media is always "in a rush".

[@dinnerwithfranklin2451]

Brilliant explanation of how the owners of production are also the owners of retail. If the first chooses to raise prices then uses that excuse as retailer to raise their prices it is a scam. How do we not see this!!!!!

[@marcusbain8743]

Thank you Yanis, I have been trying to find out why wholesale costs are so much.

[@robinseaby9638]

Enjoyed this a great deal - Mr Varoufakis always puts forward a very persuasive and clear case. The other aspect of the simulated electricity market is that the output of all producers is the exact same thing. One power station can't differentiate itself from the next one by making its 230V AC a little bit nicer for consumers. It's also a market of a more or less fixed size (from one day to the next) and one where consumers can't just vote with their feet if they don't like the electricity price that any provider is offering.

[@gerhard7323]

Most of the electricity 'supply' companies that we sign up with are really no such thing. They are really just agents/brokers/secondary sellers. They don't 'supply' anything. It's not dissimilar to the insurance industry in Europe where most of the household names are really just underwritten/supplied by the big four or five insurance behemoths.

[@maseefmandic9583]

This video needs to be shared with as many of your politicians as possible to let them know that you are not prepared to be used and fooled. Also share with as many friends as possible we can use the tools of the internet and social media to our advantage. If they want a reset let's give them one that benefits mankind as a whole and not just the Elite.

[@joaocosta3374]

You're all voting for them at the end and if they feels the power slipping off their fingers they'll call you a fascist/racist by the media, and in last case they will cheat on elections by using non verifiable modes like eletronic voting.

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@astorbeijer9424]

I live in the EU. In the far north. I can tell everyone that what Yanis says about EU electricity is EXACTLY right.

[@CookinginRussia]

I don't know what you are talking about. I live in Finland and electricity is some of the least expensive in the world.

[@astorbeijer9424]

@@CookinginRussia lol. I live in Sweden. We, as in all of the people I come into contact with on a regular basis, are stocking up on basic supplies and finding alternate sources for heating/ cooking in preparation for the winter. All the news here is basically about how to prepare for Armageddon. Glad to know you are having a much easier time with the sanctions. Hopefully, the rest of the EU is having an equally easy time with these sanctions as you in Finland.

[@CookinginRussia]

@@astorbeijer9424 - That's interesting and very different. I haven't heard anything like that from anyone here.

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@admiralfloofz658]

@@astorbeijer9424 I also live in Sweden, in area 4, Skåne, which is the most expensive. Currently the electricity price per hour is 8 öre per kwh. Last night it even went it to the negative. That because of two reasons 1. its been very windy lately which means our windturbines are producing a lot. 2 because the powerline between Sweden and Germany/Poland is broken, so we cant export massive amounts of energy to them. I do not believe in what this guy says. Theres too many things that doesnt make sense. Swedens current energy prices for example. Or the fact that Uniper which is the largest energy producer in Europe is now owned by the German state. Aka, it isnt privatized.

[@SoledadSolary]

Thank you to Mr Varufakis and the interviewer and the youtube channel who made possible this video. As a follower and humble consumer, it is very clear the explanation and it is really appreciated. Thanks and hope this new system capping energy for benefits of oligarchs could be reverted. Only hope and the more a full interview, without interruptions from the main tv channels, could be spread and be heard. Thank you.

[@robbiecee2]

I see at least 2 problems with Yanis approach. First, it would disincentivise the transition to renewable energy because 5% of the marginal cost of production via natural gas is much more than that of solar or wind, so it is more profitable for producers to use natural gas. Secondly, the bottom line is we do not produce enough electricity via renewables so we NEED to subsidize via natural gas for the time being. The first point I made would only serve to aggravate the second.

[@TheMaddav]

To expand on what Yanis explained at the end I wanted to quote a short paragraph from the FT, together with the link to the article but it comes with threats for breaching copyright laws. So here is the thing in my own words. Electricity companies often take short positions on futures market before they sell their electricity on the physical markets. They do that for hedging purposes ie to secure a price in advance and eliminate the risk that the market price goes down. But with prices skyrocketing instead, they are facing huge margin calls. Of course, it's only a liquidity problem because these margin calls should (more or less) equal the gains they make on the actual markets. Now, here is my own question. Producers who have hedged their electricity sales in this way are in fact not profiting from the soaring prices. Effectively, they already locked in the sale price when they sold the futures. But who are the people with long positions, who are making the profits, then? If it's not financial speculators, it must be either the electricity retailers or large companies, which are big electricity consumers. If it's the retailers themselves, it would be pretty ironical if they receive government money as they would stand to profit twice! In any case it's not the average Joe. But if anybody from Diem/Mera is reading that would be an interesting topic to research.

[@christurner6430]

Surely the wind, nuclear & solar generators are making megabucks because they get paid the rate that the gas-fired electricity producers receive for using their super-expensive natural gas. Right now over 60% of electricity is being produced from gas.

[@djreddy666]

Love Yanis! He is such an intelligent guy. Remember him so well from the greek debt crisis. An absolute legend in his own right!

[@bradleyhalfacre7992]

He is also a EU globalist.

[@liamK1916]

@@bradleyhalfacre7992 yes a massive communist but still gets rolled out by the main stream. He re wrote the communist manifesto 😂

[@joelwest5396]

When will you run for World President Yanis?

[@mazg4707]

@@joelwest5396 we don't need anyone running the world. That's why we're in this mess right now.

[@joelwest5396]

@@mazg4707 No. We don't have a united front against the evils that are killing our people and our world rld: the vice-motivated, paedo-raping, Crapitalist Overlords and the dangerous, damning economic structures these demons built since we didn't have the emotional maturity to put aside our petty vices and egotistical bullshit. If you want to live your life as the spiritual equivalent of a crack-hoe, that's on you, keep shopping. Other people realize we need something very different.

[@dealer7172]

25% of Uk bills currently are for change to renewable energy. This is what the companies should be investing there profits in not taking as dividends. Rolls-Royce military sector has a fixed maximum profit of 8% which is fair and should be imposed on all living needs. Heating electricity and water. Very simple to do and doesn’t effect share holders to much.

[@paulcollins8296]

Yanis is brilliant, his analysis is invaluable, and he should be registered as an international asset, perhaps an international heritage asset ! Although his analysis and investigative skills are invaluable, I do not share his conclusions. For example, there is no logic to say that competitors cannot compete to supply electricity over one cable. In the UK various companies compete to provide mobile phone services over each mobile network and the market is extremely competitive, I can provide many other such examples. When I studied Electrical Engineering in 1988 the price of electricity was artificially high because there were too many power stations! Many of those power stations were old nuclear plants that have since reached the end of their life and been decommissioned. Since then technology has raced ahead and there are now many sources of power that were not available at that time e.g. wind energy and solar farms. Yanis is absolutely right that the auction is dysfunctional and needs reform but when that system was created there was not the diversity of power sources and diversity of costs that Yanis so clearly highlighted. Basically the market regulation needs urgent reform and has needed this for decades. I am rather surprised that Yanis with his financial expertise makes such schoolboy errors as to say that solar energy is almost free. Solar farms only exist because of huge investment into R+D and further investment to install those farms. Much of that capital expense will have been financed by debt and will be subject to interest charges. All those debts and investments need to be repaid otherwise no investor will invest in new higher efficient technology in the future. Yanis is correct that the current market regulation and auction arrangements are nuts and must be reformed, that does not mean that energy generation should be nationalised. When Stalin nationalised farming in the USSR more than 5 million people starved to death. Yanis chose the UK to illustrate the current problems with the privatised energy sector. To balance his conclusions, he should apply his same magnifying glass to the public sector in the UK e.g. 333 local councils in the UK which are in total chaos and consumers are suffering greatly. Please keep the great analysis coming.

[@davidbrown2571]

Energy shortages are NOTHING to do with outin, it's our own government that is to blame.

[@SalimEttani]

It's not à scam, it's à racketeering

[@chrisko6439]

Mafia, aristocracy, "democratic parties", just names, but it is all the same, always has been. And when there is a revolution, mostly OUR heads are cut off.

[@peterswatton7400]

In New Zealand, I'm paying 16.3 cents (Euro) per kilowatt / hour, plus line charge, just for comparison. We are over 80% renewables.

[@algarvemicky1237]

I was thinking the same way but had no idea about the complexity that Yanis explains, he is a superstar

[@trishh.7675]

Can't believe that about the 'INSURANCE'!!! Now I understand the corruption better. Agree with everything that was said. I also find the last couple of years to have been such an intensivication of evil dominance. It's all escalating at such a frightening speed. Yes, we need a complete political 'spring clean', because the alternative existance we're now being offered will simply make 'living' too hard and painful - how sad. Thank you, to all you good guys!

[@josefserf1926]

Competition doesn't work when all of the companies have the same owners.

[@hannahmitchell87]

bingo!

[@kevanchippindall-higgin1859]

This sounds exactly like the ECB Target 2 system. It too will eventually fail, killing the euro and the EU. What the UK needs to do is to issue new licences to frack, drill and dig on the condition that the fuel is sold to UK PLC on a cost plus basis and that none of it may be exported. We are already exporting some North Sea oil and cannot stop that from happening. So start afresh and keep the price down while retaining private enterprise. As for green technologies, there is a lot of sun in Greece, which makes solar vaguely viable, although life gets a bit gloomy after the sun goes down. The UK is not blessed with Greek sun, so that does not work very well. The windmills require wind. If it does not blow, no power. If the wind blows too hard, then the windmills must be turned off or they self destruct. Both solutions are intermittent and unreliable and thus unsuitable for advanced economies. The only reliable solution is nuclear. Of course, all of this is unnecessary because CO2 is plant food, not a pollutant, but trying to turn that ideology around is now impossible. If you question this nonsense, you are branded a heretic and cancelled.

[@danielasteierer6135]

“The Department of Ecology announced Tuesday it had sold all of its almost 6.2 million allowances, each representing one metric ton of greenhouse-gas emissions. The settlement price was $48.50 per ton, more than double the starting price of $22.20. The department says the revenue raised from last week’s auction will be confirmed in a report later this month after financial transactions are completed.” March 7, 2023 Seattle Times Wondering what Mr Yanis V and rest of panels think about this?

[@fred6319]

the Amsterdam Stock Exchange, the one that decides the price of gas in Europe, belongs to a U.S. financial company, which determines the price based on speculative and political mechanisms. ENI itself, while buying Russian gas at a low price, resells it at a high price according to the Amsterdam quotations. A real scam against Italians covered up by the Draghi government-

[@MonaLisa-lu8zi]

Right. The discussion now being waged is that America is actually a colonial power which outreaches to "its" oversea territories via land bases, companies, global corporations, and global bodies. The financial network is intrinsically linked.

[@RR-qj1ji]

you just described economics 101 . the market decides the price wtf are you talking about

[@fred6319]

@@RR-qj1ji determines the price based on speculative and political mechanisms. and they blame Putin

[@RR-qj1ji]

@@fred6319 yep yep and yep. Still markets deciding is by far more efficient than central planning and price caps. The recession will balance everything out, about 30 % of companies worldwide are zombies and should have closed during the pandemic its about time everything corrects, its not going to be fun but absolutely necessary. The biggest scandal is not teaching people more about economics like a lot more, if you dont understand money you will always be a consumer of stuff and ideas.

[@fred6319]

@@RR-qj1ji markets deciding is by far more efficient to flease the working class markets are manipulated and if you don't know that i am wasting my time central planning in China is doing well and pulled 8 million people out of poverty and what part of and they blame Putin dont you understand? and did if you even watch the video? because he explains that it is al a scam

[@jimbob-robob]

All utilities and resources need to be nationalised...including broadband...

[@jokers7890]

Yes, but we do not need reforms like this which are just little crumbs.....we need to OVERTHROW THE ENTIRE GLOBAL SYSTEM OF CAPITALISM RIGHT NOW AND SEIZE ALL WEALTH and INCREASE THE PRODUCTION OF WEALTH EXPONENTIALLY BY RULING SOCIETY IN OUR OWN INTERESTS

[@ms-jl6dl]

So ruling parties should own them? Not a god idea. If you believe that "people" could own anything,wake up. STATE can own anything and that means GOVERNMENT/RULING PARTY will do as pleased with its "assets". End The Governments. Enough.

[@12235117657598502586]

I now don’t want the mass populations to understand why their energy and food bills are suddenly so unaffordable… BECAUSE WHEN ENOUGH PEOPLE SUFFER BECAUSE OF THE WEF / GOVERNMENTS HEARTLESS BAD DECISIONS, THE MASS RAGE TOWARDS THEM WILL BE TRUELY TERRIFYING! 😡

[@gigedygigedyson5885]

Nations must cease, power must cease, all the power to all the people!

[@danguee1]

Ah, anarchism. Ah, lawlessness. Gotta love it! Can't see _that_ ever going wrong....

[@marieubiles1377]

One correction to Yanis argument, wind and solar marginal costs cannot be zero even though wind and solar light is free because wind/solar generation is non-dispatchable and need to have a gas plant always humming in the background to deal with the sudden drops. Hence, when paying for wind/solar, the consumer will always have to pay for gas fuel costs. The stupidity of the energy markets is that they are trying to create fiction against the hard constraints of the grid physics.

[@MyAnalyser]

Interesting. I agree that it is madness to sell megawatt hours on the level of the highest bidder and I don't really understand why this is done except if indeed it is like Varis says a scam. I'm not sure about capping the marketprices based on the source of energy though as Varis describes. The good that is in need is "energy" not necissarily energy from a particular source. So most people would probably prefer "green" energy because of the environment but when it comes to the wallet they don't care if the energy comes from hydro, wind, oil, coal or hobbits running in a training wheel, they just want to pay a low price. So to me a market average of energy regardless of source makes the most sense: There is a very important reason why capping wind at 70 and Solar at 85 while allowing gas to be at 750 wouldn't work, and that is it would completely destroy the lower class and poor people in our countries. The reality is that people who can afford the installation of heatpumps, solar panels, etc on their houses and get off gass completely are the wealthy. You look at most poor people they live in badly insolated houses and are relying on gas for their cooking, their warm water and heating. So capping megawatt based on source would only be realistic if the government then also spends a huge amount of money, a Marshall Plan of some sorts to heat insulation of cheap and old houses, installing heat pumps and solar panels for the poor and lower middle class. Only then would it make sense, otherwise it would simply be a huge financial injection for the wealthy class while the poor get bled to death on gas prices.

[@stuartbedwell8576]

When the Germany economy tanks this winter it'll take Italy and Greece with it. Cheers Stuart.

[@joaocosta3374]

Machine money goes brrrr

[@reno.zed1]

Why Italy?

[@Strykehjerne]

🇧🇻 we are self sufficient on hydropower.. the two ACER cables that joined us to the European grid and the privatisation/competition based model now makes us pay German prices for what used to be a stable commonly owned resource. And we're all having to be subsidised with our tax/budget money. (We don't have to borrow though, but we break the rules of how much to spend of the national savings in the sovereign fund).. . but still households are paying close to triple for something that we spent hundreds of years to developed to sustain us locally at reasonable prices.. and we don't use coal or nuclear.. just a little wind.. someone is stealing somewhere..

[@DV-dt9sq]

Yanis, please talk more on financial scams of the rich. We need to know how they are doing it, so we can fight against them. Thanks.

[@marvinstorm9153]

Righty oh. Until you get rich by minimising tax .... Which is not against the law.

[@simonbroberg969]

He's right no one is going to spend 25 minutes to explain that... someone told me all that yesterday and they only took 5 minutes. Sorting out power paks, new solar panels and a little mini wind generator at the moment... If the old dead mobility motor still runs I'll get it putting out 24V, if it doesn't, the little motorcycle altinator will give me 12V at the moment I just have 3 55Ahr batteries and 2 x 39 W panels which did the job for me over the summer producing just all my lighting, recharging the smart phone.... but I need more as I now bought a heated waistcoat and 4 mini paks which will keep me warm all day.... and I need to get them recharged as well. Two of the bigger paks with the built in inverters will also help, one on charge, one running fridge/freezer and hopefully my kettle. if I set things up well, only thing I will be taking out from the grid is the power for the computer

[@hilaryporter7841]

Thank you for getting your brilliant head around all that Yanis, now I'm hoping that Mick Lynch and Eddie Dempsey can convey it in a way that our poor long suffering public can understand in the UK. I have faith.

[@elenamoses3663]

Can you ensure that the union leaders will expose this? We Own It who campaign for public ownership of utilities have not really explained how this layered energy scam works in the UK. The complexity of it is daunting but needs understanding before support for its dismantling can be guaranteed.

[@beckyboop3517]

share share share on every platform and with friends and family.

[@fredatlas4396]

Simple we just need to get rid of our tory government, just stop voting for the con party. Here in the UK our tory government since 2010 hasn't really capped the energy prices, that's the real problem. And if liz truss does cap energy prices at a certain level, she's not going to tax the energy companies any more on their massive profits. And she will no doubt compensate the energy companies by giving them our money, money from our taxes. And because we have a tory government, it will be the poor and less well off who will end up paying for the energy companies to be compensated, so they maintain their massive profits

[@12235117657598502586]

I now don’t want the mass populations to understand why their energy and food bills are suddenly so unaffordable… BECAUSE WHEN ENOUGH PEOPLE SUFFER BECAUSE OF THE WEF / GOVERNMENTS HEARTLESS BAD DECISIONS, THE MASS RAGE TOWARDS THEM WILL BE TRUELY TERRIFYING! 😡

[@hilaryporter7841]

@@12235117657598502586 You have a point there. I don't want uncontrollable rage, that is self defeating. I just want people to shout from the rooftops, enough is enough.

[@protitikhan3861]

They really want to privatize our hydro electricity here in Canada. I will fight them physically if I have to in order to prevent this. One thing I 'd add to your proposal Yanis is that the government could incentivize profits from clean energy by increasing the profit margins for those companies offering clean energy alternatives. Great breakdown of this issue.

[@bipl8989]

Fight Fight Fight! Do not let them do it.

[@samuelprice538]

Just pausing the video after your description and so far I don't think this is a scam. That will result in moving the obscene profits of the gas companies (which the consumer has no control over), into the pockets of the retail companies (which the consumer can switch between). Competition will ensure that enough consumers will switch to the cheaper retail companies that all of them will have to drop their prices significantly. If the UK govt does this my retail company Octopus, which is a 100% renewable provider, will pass on most if not all of the money to me. In addition they are a really great company that isn't paying dividends to shareholders so any money they keep will be used to further expand renewable energy.

[@maryebert5897]

I worked as a system engineer at a privately owned public utilities in Minnesota. On the East side of the Mississippi River are power plants ran by a cooperative in which the rate payer owns the company. On the west side is the privately owned, for profit, power plant where I worked. The cooperatives were efficiently run. Projects were installed that gave great pay back and lowered Operating expenses. At the power plants owned by the privately owned company, we installed projects that increased operational expenses and refused to install projects like the Cooperative. For example I was a system engineer for the coal yard. I brought back their projects to automate the coal yard, such as reclaim coal stacker. These projects were turned down. So we employed 60 plus people in the coal yard as compared to the cooperative power plant, which was twice as big, which employed three people. Accountants were running this company so that the CEO could make 200 million a year. In the 70s the CEO maybe made $300,000. At one point management pulled the engineers into a room and demanded we stop maintaining our equipment as the company makes their greatest profits when the equipment fails and they get a capital project. The nuclear power plant was even more corrupt. Power plant and electricity companies should be owned by the rate payer and not a for profit company!

[@henryfrost8542]

Well explained. The whole world is being screwed to put it in a nutshell. High cost of living. It is sure a scam, unfortunately, we are the ones that have to suffer...

[@VeganSemihCyprus33]

The Connections (2021) [short documentary] 🌳🌳🌳🌳

[@antoniodefilippo8484]

not true we the people of yhe world should unite and have a revolution no a bloody revolution but a kind of Mahatma Gandhi, revolution

[@ivansemanco6976]

Very nice energy scam explanation from Yanis. One thing is even worse, Yanis mentioned that electricity from windmill costs only maintenance. This isnt true in reality. It costs also backup plant, mostly gas powered as in Germany. Imagine, if you increase your installed power with windmills, which are volatile sources, you also need to have a backup for case they cant produce electricity(ie no wind, not enough wind, very strong wind). You also need to distinguish between two types of backups, one is cold and one is hot backup. The hot backup is very interesting because this power plant is working, generators are spinning but they dont sell electricity to the grid. If windmills doesnt produce enough power, this hot backup is connected to the grid and fullfill demand for energy. The problem is, you need to pay all the costs for such backup... so your electricity becames more expensive. Julijana mentioned previous government in Germany and their decision to go to the gas power plants. So if you start to think what is writen above, you can easily make conclusion why they go this way. Natural gas has half CO2 pollution if compared with coal, coal mining is not very friendly and gas power plants can start very fast if they are prepared, I think in 8-9minutes from cold state. And on the top, Germany decided abandon nuclear power so there isnt very much what you can to do differently than natural gas. Unfortunately, Germany isnt isolated island and we all in Europe will feel the results from. Yanis also mentioned Ursula strategy to put aditional taxes to energetic companies, this is absolute nonsense because our problem arent electricity producers, our biggest problem are market guys who makes incredible profit. Thank you all, nice video.

[@TomasSawer]

But why not to simply switch on nuclear plants? At least for the base generation? And then regulate consumption by zoning retail prices by time?

[@ivansemanco6976]

​@@TomasSawer In Slovakia we are in process to start new nuclear power plant, its now fueled and if everything goes OK in two three months it will be conected to the grid. But in Germany they decide long time ago to abandon then and due to complexity of such systems it not easy to revert such decisions. Also traditionaly strong France is years balancing about what to do wich nuclear plants and if my memory is good also Belgium... In Europe we lost minimum 30years of development in the field so it is very difficult to change and get back lost positions. Small plants like build in Slovakia cant save the situation, Hungary is on their own way but as contractor is Rosatom im very skeptical, in Czech republic decision was made to fire out Rosatom from planed new plant... There is only few companies in the world capable finish such huge project in time, China, Rossia, South Korea... Im doubting other companies as they are strugling at some old projects. Political decisions was made, not technical. Unfortunately. And one note about retail price, consider that industry cant handle this, they need very stable grid 24h at some countries and processes, its very complicated topic. Have a nice day.

[@TomasSawer]

@@ivansemanco6976 Indeed. Sometimes ago Siemens had very powerful nuclear plant developing division. Not sure they save it and still able to build a new plants. Anyway in all countries not already started such projects now it will not help in the current situation. I always be interesting how the european green shift energy program handling daily and yearly energy grid balancing. Now I know the answer - by simply using gas powerstation backup for the near all pv/windmill generation. Simply but very risky solution also has nothing to "green" concept.

[@ivansemanco6976]

@@TomasSawer Before Slovakia became a EU member, Siemens was upgrading some systems at our nuclear plant but few years later when negociating EU membership, we was pushed to prematurely close this plant... Pressure from our neighbor was very strong and still is for newly constructed plant. But it seems that they have no problem use electricity from, if they doesnt have enough power... Some things goes wrong in Europe and Im not sure, if it is still the same EU we join years ago... Have a nice day.

[@TomasSawer]

@@ivansemanco6976 My mother worked in late 1980 on automation for Mohovets nuclear station from Soviet side. In early 1990 contract was transferred to Siemens. But according to wiki today this plant working ok and even has plans to run last 3 and 4 reactors. Seems the main issue is not a "base" electricity generation providing by nuclear/gydro/etc stations but temporary or backup stations to stabilize daily consumption volatility and volatility of green power generation. In current German strategy (fix me if I not right) digits of "44% of generation is pv/wind" means that near all of this 44% should be backed up by coal/gas/oil stations to prevent blackouts in case of bad weather. So when weather is bad it's not 44% but 0% and when weather is fine it's 44% or more. This can be fixed by energy storage solutions but seems for today is no cheap enough one and Germany preferred "simple" way to import russian gas instead.

[@stevemartin4249]

I have just started reading Lobaczewski's 'Political Ponerology: The Science of Evil, Psychopathology, and the Origins of Totalitarianism' ... and while I don't think 'evil' can be reduced to the heuristics of science, one of many ideas I am getting from this book (as well as other sources over the decades) ... is that it may be a mistake to distinguish between corporate oligarchs and political animals beyond the community level. Like Japan, where I live, they are one and the same self-selecting ruling class ... the same people who are genetically predisposed to be high in 'dark-triad' personality traits (Cluster B), and they are in your family, in your community, as well as at the largest scales of organized society. I don't have the foggiest idea of how to deal with this dark side of collective human nature, but I am guessing that the logical dysfunctions of scale is what makes their (our) ultimately self-destructive behavior all the more salient.

[@simonapalosan3208]

This is the ultimate explanation indeed, the low level of the collective human psyche, morality, spirituality or humanity whatever one would name it. I will look for the book you mention, thank you.

[@maxheadrom3088]

I would love to comment on Chris Lothian's comment on the chat replay: if climate change is obvious we don't need to know the cause - we have to fix the problem. Non linear complex systems have convergence and divergence regions and on a system as complex as the climate we have no idea where these regions are. Increase in the frequency and amplitude of oscillations indicate the system is running the risk of reaching a divergence region - a region that will kick the system to a place we have no idea how it will be. I believe the only other region of convergence we know off is the "snow ball Earth". (regions are ranges for the system state variables. Let's imagine the climate has 3 variables: temperature, CO2 in the atmosphere and area covered by glaciers. This three variables could be seen as a 3 dimensional space and there would be, in that space, a 3 dimensional blob - and that blob would be a region of convergence. There would also be lines on that space that are the regions of divergence. The image often used to describe regions of divergence is an egg on the edge of a table that will fall with the slightest perturbation of the table. The climate has tons of variables and we don't know the relationship between all of them - and even if we knew, the non-linear nature of the system makes it prone to impredictability. My explanation with only 3 variables is an attempt at making it easier to understand for those not familiar with the math concepts. BTW, I'm no specialist but I did study dynamic control systems at engineering school and that is basically how to guarantee a control system acting on a dynamic non-linear system won't get out of its convergence region.)

[@jaketan5172]

Reduction of a complex scenario to a simpler model based on Math with the basic assumption, 'all things being equal', is differentiation. For each differentiated outcome, re-integration back to the original whole would put the issue back into context. When the context keeps changing, assumptions have to be updated. Your 3-variable modelling has the potential of increasing to 4 variables, 5, 6 and so on to a large enough number of variables, or infinity as a mathematical model based on limits to infinity. Differential Calculus and Integral Calculus utilised together can present a picture that makes sense to people who learn. Differential Calculus create shorter term solutions while Integral Calculus reveal longer term resolutions that buy us time. Now, how many politicians of economic, law and various backgrounds actually understood their high school maths? Maybe their teachers and the examination systems are to blame, but right now putting up a learning stance is more critical than a knower's stance.

[@marksutton5817]

Said this ages ago. 2008, countries got together and sorted it out. 2022, why aren't they getting together and capping the profits that the companies are making? And if it is because of the war, which is BS, then that is illegal to profit from war. So, why is it being allowed to happen? That's the question, surely.

[@sylviathomson6667]

Yanis has always been a man of great intelligence. The UK has none to compare sadly.

[@billjane5522]

Agree,

[@Gumardee_coins_and_banknotes]

Jonathan Pie

[@leeseyr503]

There are people in the UK that know more than this man...but they would never be in any position of power as they alone are a DANGER to the control structure in place for the EL-ITE

[@benyboy273]

Nor Germany 😂

[@Dead2098]

Too many simple lies for an intelligent person. Unless he thinks his audience won't notice.

[@SlamSector]

You are right the marginal price system is mad... I heard the reason for the system was to provide proper incentives to invest in renewable power production. In reality it works as intended although it is having some very adverse price effects at the moment. Problem is that the system create some pretty bonkers prices when the power source you generally use to keep the price low is suddenly a scarce resource in parts of the power grid. Another problem is the renewable companies often sell their power years in advance through futures to keep the prices stabile, which means they often don't benefit from the spike in high prices, investment companies do.

[@lincolnteh1963]

Depending on cheap russian gas is not a problem. The problem was killing the goose that lay the golden egg. When you decide to take the best deal there is no alternative because it was already the best deal.

[@rodneykiehne5212]

Thank you. The young man sounded ungrateful for the lifestyle that he enjoyed because of cheap Russian oil and gas. I have never understood the either/or mentality surroundings the global warming debate. But it strikes me that Germany, as a innovative shaker and mover, has been complacent because of the cosy arrangement it had with Russia. This is in no way Russia's fault. Germany needed, Russia provided. Germany even demanded a second pipe line. Which Germany built. Still not Russia's fault! If anyone want to assign blame.....Germany is still an occupied country. Start from there.

[@a64738]

It is ALL part of WEF / UNs "the great reset" and " you will own nothing and be happy"..,. ,..,.

[@bipl8989]

Chicken livers are a good deal, but I don't like chicken livers. Germany's "fault" is that even though they didn't like chicken livers, they acquired a taste for them, because the price was so cheap. Now the chicken livers turned out to be toxic. Germany's fault is its greedy capitalists. Russias' fault is its belligerence.

[@andrewpaddock7560]

Man, I would make a LOUSY business man. None of this made any sense to me. It's embarrassing! The whole mentality, the mechanisms, the details -- all of it just flies over my head. Am I alone, or does any else out there find this stuff too convoluted to comprehend? If no media will give 23 minutes to explain this, how do dunces like me manage when they do get it in a place like this? The world is just getting too complicated for me, and I'm just resigned to it. What else can you realistically do? I know the world's coming apart, but I don't understand how. It immobilizes you, and over time, it drains you. The last two years ain't helped my mind much either.

[@stardust5397]

I used to consider myself a dunce & no way could I have understood this until I went back to study business & economics in my 30s & then taught it to other students. My experience leads me to believe anybody of just average intelligence can get their heads around the basic concepts of most subjects if they have the will - Yanis’s early books on Economics are a great start.

[@renniesquires8586]

to keep it simple,the rich are being greedy ,the governments around the world are letting them get away with it ! and we the people are the one's who are paying for it

[@gmac8586]

Michael Hudson's books. Start with a short video.

[@giovannamoro8564]

I feel exactly like you . I came to the conclusion that even if i understand I can't change anything , i can only understand it and suffer about it or understand it and be proud of myself for understanding it but nothing will change . From what I understood mafia is all over and it has the power to corrupt any government . It did it for scamdemic, than for ukraine and now for energy . Sad very sad .

[@joaocosta3374]

Calm down fren. Even if you understand this, there is very little you can do. Even if you vote them out, they'll get a cheating way of getting back in control.

[@Michael-4]

Next week, Yanis explains what's gonna happen just after everyone (or at least those that can afford them) has bought an electric car.

[@netautorisationnetautorisa545]

*.... GREECE .... !!! (ARE **#SHIPPING** **#RUSS** **#OIL** ) ..... "READ" .. **#RUSS** **#OIL** ...* *.... (THIS THEY **#NOT** TELL **#PEOPLE** !!!) ....*

[@thepikeangler2022]

They are told to buy a petrol or diesel one again as electric is increasing co2 any they'll be taxed more if you have one.

[@lawrencetaylor4101]

I proposed Windyday Concept 20 years ago, but the Swiss financial industry fought me since then. Communities would have worker coop factories for solar panels, batteries, wind & tide turbines and local farms. The farms would be for food, but also hemp and flax. The priority for the batteries should be for buses, trucks, farm and construction equipment, and we should get away from a car based society. There was a lecture by Simon Michaux saying we can't convert our present world needs to renewable. But our present energy needs are 6 times increased due to our dependance on fracking and tar sands. I had proposed to go into Swiss professional schools to encourage students to go into renewable energy products. I had arranged for two factories in Switzerland to be converted to solar panels and batteries. I had a meeting with the government, but they didn't accept my project since the climate groups didn't support me. The problem is that the scams are run by the bankers. In Europe you are letting the Swiss do the accounting. Don't listen to the controlled opposition that say that the WEF is using a "Green Agenda". There are many people that have gained your trust that are spreading these lies. I'm talking about The Grayzone, The Duran, Jackson Hinkle and now that he's embraced the Grifter, Jimmy Dore. Renewable energy would work better but it requires small changes to the grid to make it bi-directional

[@thekaiser4333]

Yannis explanation was very good and easy to follow. Very good. Thank you from Germany Well done!

[@TheUAoB]

Of course Yannis isn't wrong about the structural and arftificial market issues from Privatisation, but he wrong about the energy mix and dependency on natural gas. There are three different categories of power generation in an integrated energy grid. Baseload, dispatchable, and auxiliary. The nameplate capacity of wind is irrelevant when the wind isn't blowing, so it's impossible to use as either a reliable baseload source nor a dispatchable source. It is only usable in an auxiliary function, that means when available it can be used to offset other energy sources. That means it *must* be additional capacity since the other sources have to be able to supply peak usage when the wind isn't blowing. Nuclear isn't able to spin up and down quickly, therefore it isn't and ideal source as a dispatchable source, but it works very well fir baseload. There isn't enough installed capacity however to provide the needed supply. That was traditionally provided in the UK by coal. There has been a policy to transition from coal to "greener" sources, biomass (which isn't really greener) and particularly natural gas. Natural gas is the main dispatchable source of electricity in the UK, and is also used to provide baseload capacity when the wind isn't blowing. This is because CCGT are able to be spun up and down quite readily as demand requires. This makes them the most valuable source of electricity in many ways, in particular because when demand is highest they can supply the market, even if that means using expensive imported gas. The increaded marginal cost is absorbed by higher peak prices.

[@dnickaroo3574]

New technology takes about 40 years to be incorporated into an economic system. The US & Europe regard Biomass as renewable Energy - it is “burning trees” - because trees can be regrown they regard them as “renewable”! It is little more than an excuse to burn Gas. Goldman Sachs has invested $50 Trillion in Biomass. It is difficult to get above 10% “renewables” of Total Energy use. The plain truth is that Europe needs Russia much more than Russia needs Europe. Europe could easily become an insignificant appendage of Eurasia.

[@distrologic2925]

10:12 No no, I think you got this wrong. With the Merit order principle the demand is covered at the price of the most expensive supplier, because that is what would naturally happen in a market aswell. If people need to buy so much energy that they need to use expensive supply, then the cheap suppliers (who are producing the same kind of energy) can move their prices up to that level aswell. (Why should I sell my energy cheap if people are buying it for a higher price elsewhere?) Also this has a great effect. By paying the cheap suppliers such high margins, producing cheap energy becomes insanely profitable as long as there are expensive alternatives in the market. So companies will keep focussing on producing the cheapest energy because that is where the major profits are. The expensive power plants don't have a very high profit margin.

[@poshvibes4021]

OK, where to start. This is a bit complicated, but here goes. The government announced a power cap price for business which is the equivalent of the domestic cap. The wholesale price for electricity cap was set at 211 £/MWh. Electricity is sold in two different ways: on the futures market and on the prompt market. i.e. I can buy Summer 23 power (1st April - 30 Sep 2023) now. That is on the futures market. Or, I can refrain from purchasing and wait until I get to summer and then take what is called the Day Ahead price i.e. I get told today what the price will be for the consumption I use tomorrow. Futures are sold in tranches of time periods, Seasons: Winter (1st Oct - 31 Mar) & Summer (1st Apr - 30 Sep), Quarters: Qtr 1, 2, 3 & 4 and finally Months. The larger the tranche, the further out “liquidity” (purchasing ability) you have, i.e. Months can be traded several months ahead, Quarters about a year ahead and Seasons up to 5 years ahead. Although, with market prices being so high, this liquidity has shortened dramatically. OK, so you can buy for future use, or you can leave it and buy today for tomorrow’s use. Because we don’t know what is happening in the future, forward purchasing will have a risk premium added to it. We don’t know if there’s going to be a war in the future which will affect supply chains. We don’t know what the weather will be like in the future effecting renewable generation, so a risk premium is added. Day Ahead trading knows exactly what is happening tomorrow, so it is priced based on known facts. So that’s a pit stop tour of how it works. When a contract is taken out with a supplier, they will price it based on what the futures market is. They then have a couple of choices, either buy the energy they agreed with you on the futures market, which will remove the price risk on them, or leave it to the prompt market if they think it will be less than the price they’ve agreed with you. Or they might buy a percentage on the forward market, and leave a percentage to the Day Ahead, spreading their risk. OK, now the ground has been set, this is the point I’m trying to make. You could have bought Sep 22 up to the last day you could trade Sep on the 30th August (430.01 £/MWh). When we get into Sep, the Day Ahead price jumps up and down, but at the end of the month you’d pay what the daily average was (268.71 £/MWh). So you’d have saved yourself 161.30 £/MWh by leaving it to Day Ahead. Winter 22 which finished trading on 30th Sep at 600.82 £/MWh. Day Ahead price has been year to date, and what the average of that has been 224.60 £/MWh. We are only a few days into Win 22, but for the 5 days so far, the average Day Ahead price has been 153.42 £/MWh. The government cap is 211 £/MWh. The biggest influence on Day Ahead prices is weather as this determines both supply and demand. If it’s cold, demand goes up and vice versa. If it is windy, we get loads of cheap wind generation and we are not reliant on gas generated electricity, so the price goes down. We have just entered the season where wind generation goes up, so we expect Day Ahead prices to go down, as they have done. So, let’s get to the crunch. What the government cap (211.00 £/MWh) has done has allowed suppliers to purchase consumption on the futures market, funneling public money to the generators at these historic highs (600.82 £/MWh), when it is highly likely that the actual price of electricity will be far lower on the Day Ahead market (current Win 22 average 153.42 £/MWh). Don’t get me wrong, we’ll have much higher individual Day Ahead prices over the Winter, but it is the average price which counts. Year to date the highest price it ever got to was 571.09 £/MWh on a single day, but the average for the year to date has still been 224.60 £/MWh. So, suppliers have been able to purchase on the forward market at ridiculous prices around 600, and the taxpayer will fork out the difference between 211 and 600 (389 £/MWh). What should have happened is the government should have forced all suppliers to leave volume to Day Ahead, then subsidise anything over 211. As it stands, Day Ahead is running at 224.60 year to date, so that is a subsidy of 13.60. Or if we are just looking at this Winter so far, Day Ahead is running at 153.42 which means no public money is needed to subsidise as it stands. The only beneficiaries are the generators, as no one in business was forward purchasing at these stupid highs. Most sensible traders have left volume open to the Day Ahead market or purchased long ago before these ridiculous highs materialised. It all just looks like a scam to funnel public money to generators. Or suppliers are agreeing the forward price with customers, but not purchasing at these forward prices, then claiming on the price they’ve billed their customers, whilst only paying the generators the Day Ahead price

[@elenamoses3663]

Indeed a lot to take in! In fact would love to hear Yanis talk specifically about the UK situation, as well as specifically about Europe (yes, separate them out) so that we can make sense of WHO TO GET MAD AT . I would have thought that it is really important for us to know the layered obfuscation of the supply chain if we are going to dismantle the system and replace it with something that gives the power to the people and takes it away from capital.

[@bipl8989]

The infrastructure of the supply chain is relatively simple and direct, basically generators, connected to grid, connected to consumers. The problem at hand is really that the market disconnects all of those things and puts the control into marketing companies whom are really just the generators themselves, then they somehow call it a free market.

[@jgmediting7770]

The right wing of the political spectrum is who to get mad at. Middle or left of the spectrum is only answer, and that’s something a lot of private capital doesn’t want. Hence the nonsense we’ve seen this past 7 years to drive people to the right.

[@d.k.barker9465]

This, the UK Model, as Yanis describes it, is the California Model from about 20 years ago. It was the primal cause for what collapsed Enron. The US is divided into 3 Electrical Grids. The 1st is thru the center of the country, Kansas Western State border, to the East to the Atlantic. The 2nd is to the West to the Pacific. The 3rd is Texas which is separate. Deregulation of Electricity Generation and Distribution, (1980s-1999)-This was done primarily because the very high interest rates during the Carter administration had destroyed the bond based financial model for financing electricity generation and production. The Crisis-California in a typical fit of liberal virtue signaling had passed laws which regulated electricity prices at the retail level, BUT not at the wholesale level. Therefore a kind of artifical border was established, at the California border, where an electricity producer, or broker, could not sell at retail, but could sell at wholesale, where, BTW, they could restrict the supply, these brokers, like Enron. They could buy electricity across the state line for cheap by, in effect, selling their natural gas to a generator, in return for electricity, and selling the electricity, at their discretion, into the artificially restricted market in California with no limit on WHOLESALE prices. On hot days, (air-conditioning), the normal price was about $35 (per Megawatt Hour), as I recall, would go to $250 per MWH. We would then have rolling blackouts. (This btw created enormous demand for large high end stationary generators like Caterpillar, by hospitals and many other essential facilities like factories that cannot easily start and stop production). They Are Doing It Again Right Now-The Idiot, (his title), Governor Newsom, of California, recently passed a law that makes it illegal to sell a non-electric car in California after 2035. They mandated a couple of years ago that all new houses in CA must have solar panels. This added $10,000-$20,000 to the cost of each new house. A couple of weeks ago The Idiot, Governor Newsom, directed that people should not charge their electric cars because it's putting too much strain on the CA electric grid. And they should turn up their thermostats to 78 degrees until after 9.00 PM. The Origin-It is the Greenie Weenie religion. We are a carbon based life form. The only way to get to Zero Carbon is to extinguish all living animals on earth, especially humans. That is in fact the plan, the nihilists, who intend to exterminate 99% of the humans on earth so that the 1%ers can live in a paradise tended to by robots who demand nothing. First there was the Plandemic, which was not nearly as bad as they thought it would be, it didn't kill enough people. Now they are going to try to freeze and bankrupt us. Next Spring they will try to starve us. Wake Up People, it has nothing to do with Russia or Putin! The oligarchs on both sides will be fine either way. So it is THEM, the Klaus Schwab types, and the people that own them, who are the enemy. Don't Forget, it is the Dolts In Davos who must be defeated.

[@seniorgill6092]

Margaret Thatcher and Ronald Reagan were very close Allie’s and probably united in this common system. His policies called for widespread tax cuts, decreased social spending, increased military spending, and the deregulation of domestic markets … effectively pumped money into the hands of certain Market Investing groups of individuals. This was mirrored by the Uk, “Conservative”, government. Most likely the same investors: Where are they now? Most likely reaping massive dividends from Ukraine arms sales, following from Afghanistan arms sales … and so on. The current energy crisis payout is a another payout bonus. Food is the next big crisis along with the impending ‘pure’ water shortages ahead!

[@joaocosta3374]

Based.

[@Stalwartandstaunch]

Thank you for this very informative feed. As a result I understand more about energy costs and the crisis 👍

[@davocc2405]

Australia did this too, what I've noted is that there's a real gravy train in the "power companies" which are generally state owned "quasi-government" entities which act as "tax without being called tax" by funnelling some of their profits to state coffers (at least it was when I lived in Queensland). They kept upping the charges year on year, saw 27% one year followed by a similar rate the next year, etc. At the time they were paying three times what Canadians were for power despite a similar population dispersion and size (and a similar dollar value), Australia had coal shipping down the road from the plant half the time so it should have been immensely cheaper. I do know that they had the so-called "gold plated network" syndrome where they would have on-site spare parts (a particular one I was told about was around $1mil a pop) and they'd have one every one or two pylons instead of the usual one every six or so. Despite this (and with ongoing complication from green lobbies) they've run short of supply despite paying some of the highest prices in the world. My field (IT) saw major service providers eschew setting up operations in Australia for that reason (power prices being far too high and the hideous telecommunications scenario of the time, Australia could have become one of the most important hosting points on the internet but it ended up being passed by for these reasons). Hopefully the future may be a little more practical in terms of solar harnessing, it will require some smart legislation though (why not rent roof space from residential premises to put power company owned panels up instead?).

[@billelgreco3460]

Thank you Yanis for the excellent explanation!

[@fabiodeoliveiraribeiro1602]

In Brazil, energy distributors set their traps both for consumers and for their retirees. ENEL (which was called Eletropaulo before privatization) threatens to withdraw its sponsorship from Vivest (formerly Fundação Cesp), thus compromising the payment of supplementary benefits due to its retirees. The company is looking to get rid of its former workers who built Eletropaulo and turned it into one of the largest electricity distribution companies in Brazil. I ask all of you to please collaborate with Eletropaulo retirees who need to receive a retirement supplement.

[@henryrollins9177]

Cuándo fue privatizada Enel?