The Energy Pricing Scam: Local Gouging, Global Theft

Ever noticed that whenever crude oil prices rise by 10%, your electricity bill mysteriously jumps by the same percentage? That’s like saying if the price of flour goes up, the cost of your burger should double—even though the bun is only a fraction of the meal. 

Now, let’s break down why this pricing logic isn’t just mathematically absurd, but pure corporate exploitation.

 How Power Companies Manipulate Costs 

Electricity pricing should be based on multiple factors, including: 

✔ Building and maintaining power plants (fixed costs) 

✔ Labor and distribution fees 

✔ Grid infrastructure upkeep 

✔ Actual fuel costs (oil, coal, gas, renewables, etc.) 

Crude oil is just one ingredient in this energy-making recipe. If it makes up only 30% of total costs, then a 10% increase in oil prices should only raise electricity prices by 3%—not 10%!  Yet every time oil prices budge, electricity costs skyrocket as if the entire system runs exclusively on crude. It’s like a restaurant charging double for your meal because onions got pricier—even though your dish doesn’t even contain onions. 

Europe’s Energy "Market": A Fabricated Scam 

This problem isn’t just local—it’s global. The European energy market itself is built on a completely fabricated pricing structure, according to economist Yanis Varoufakis. Governments have engineered the idea of an electricity "market," not to ensure fair pricing but to allow large corporations to inflate costs, pocket subsidies, and squeeze the public for profit. 

✔ Privatization has led to artificial price inflation, making it easier for corporations to manipulate costs. 

✔ Price caps don’t stop companies from overcharging consumers—the government just covers the difference, leading to more public debt. 

✔ The system ensures massive profits for corporations while consumers bear the financial burden. 

This energy scam isn’t unique to Europe—it’s happening everywhere. Whether it’s South Africa, the U.S., or Asia, the same deceptive pricing model lets energy giants rake in billions while consumers struggle with bloated bills. 

 What Can We Do? 

✔ Demand Transparency—Breakdowns of real cost calculations should be public. 

✔ Push for Regulation—Price hikes should reflect actual fuel cost changes, not CEO greed. 

✔ Consider Alternative Energy Sources—Because fossil fuel market manipulation is getting old. 

✔ Spread Awareness (Share this post)—The more we challenge these unfair pricing systems, the harder it becomes for corporations to keep exploiting us.

If power companies are going to overcharge us, they should at least make the lie a little more creative.