Energy and emotions

Energy and emotions

Supposedly, we strive for objective decisions. In the electricity sector, whether on the supply side or on the demand side, the same would apply.

heoretically yes!

But in practice it’s not quite like that, as we all know!

When I talk to corporate and institutional clients I notice that there is always an emotional bias involved. And it can even be prevalent in the decision-making process.

Many years ago, when the free market was beginning in Brazil, I proposed a migration to a large industrial plant (which then was a regulated energy user) in order to achieve significant cost savings. The VP’s response was: I don’t like this idea.

Of course, the VP has the power to decide and needs to be respected.

What shocked me though:  there was no justification to support the statement. This situation aligns with psychologist Dan Ariely’s findings which were published in a fascinating book “Predictably Irrational”.