The Pub Analogy That Perfectly Explains Electricity Pricing! - Rory Sutherland

Added: 2026-05-06

[00:00:00]And by the way, I mean the way we charge for electricity is a stupid thing which we could change really quickly, which you know much more about than me.

[00:00:06]So it seems to be a system where you go out to the pub, and if nine of you order a pint of beer and one of you orders a bottle of Chateau Petrus, everybody pays for a bottle of Chateau Petrus. That's more or less how it works. Worse than that, they mix it up and all sorts of ways.

[00:00:20]>> pricing. Yeah. I think that is the most elegant description of marginal pricing I've ever heard. I tried to tell it with fruit. Yours is better.

[00:00:26]>> Yeah.

[00:00:28]>> [music]