Tech
To fix broken electricity markets, stop promoting the wrong kind of competition
Competition is seen as a panacea in electricity markets: if only we had more, prices would be lower, and investment and supply security would be higher.
Politicians love this story because it offers respite when electricity prices rise. Just unleash regulators and competition authorities to “fix” competition barriers—problem solved (for now).
Encouraging retail competition becomes a priority. Consumers are slow to change retailers, even if they could save hundreds of dollars a year, which is seen as a brake on competition.
Regulators and policymakers therefore champion price comparison services and other measures to encourage electricity customers to shop around.
Also, standalone retailers often protest that they can’t access generation from their rival “gentailers”—firms that combine electricity generation and retailing—on fair terms.
If only they could—and customers more keenly switched providers—retail-only companies could provide stiffer competition. Their solutions include lobbying for gentailers to be broken up, or be forced to supply retailers on the same terms as the gentailers’ own retail arms.
The trouble is, if we misidentify the causes of lackluster electricity market competition, our solutions may only make things worse.
Rather than the lack of competition being about too little customer switching and barriers to retailers entering the market, the more likely cause is too much of both.
Hit-and-run retailers
For the big gentailers (such as New Zealand’s Mercury, Meridian, Contact and Genesis) to face more competition, we need either more gentailers or other ways to achieve the benefits of gentailing. Those benefits are twofold:
- combining generation with retailing effectively manages the huge risks standalone generators or retailers face when they buy and sell on wholesale markets, where prices are highly volatile and can rise to levels that kill businesses; in turn, this helps gentailers finance investment in generation
- and gentailers only need to add one profit margin to their generation cost when setting retail prices; separated generators and retailers add separate margins, which can accumulate to more than what gentailers alone charge.
Separating generation from retailing is therefore a bad idea—if you want lower prices and better investment, you probably want more gentailing.
But why can’t separated generators and retailers replicate these gentailing advantages through long-term contracts? Because generators incur large investment costs to be recovered over many years, so to finance their investments they need long-term revenue security.
Standalone retailers can’t credibly sign contracts offering that security. If they do, new retailers (which can be set up relatively cheaply) can steal their customers when wholesale prices fall below the level of those long-term contracts.
If retailers do sign long-term contracts with generators, they risk failing when exposed to such “hit-and-run” competition by rival retailers—or they renege on those contracts to survive.
Generation investors see this coming, so don’t contract long-term with standalone retailers. Result: lack of viable investment and competition by separated generators and retailers.
The right kind of competition
To resolve this, we would need to eliminate hit-and-run retail entry—first, by making it harder for customers to change retailers if wholesale prices fall below long-term contracted prices.
This could be achieved by requiring retail customers to sign up to long-term retail contracts themselves, rather than being able to flexibly change retailers. Ironically, price comparison websites take us in the wrong direction.
Second, new retailers could be required to have either their own generation—be gentailers, in other words—or have long-term supply contracts in place with generators.
Counterintuitively, this actually makes it easier—or at least more sustainable—for retailers to enter the market, because they know they won’t face hit-and-run competition if they do.
This also means generators can more confidently sign long-term contracts with retailers. Retailers wouldn’t then need to convince regulators to force gentailers to supply them, as they can secure their own supply through contracting.
Standalone retailers might object that they would do this now if they could. But generators can’t supply standalone retailers given the current long-term contracting uncertainty.
Fix that uncertainty—by increasing the ability of retailers to commit to long-term contracts—and both generators and retailers win. Ultimately, this means gentailers face more credible competition, which also means consumers win.
By discouraging the wrong kind of competition (rather than promoting it), genuine competition can be made more durable and effective. That would support long-term investments by generators, and also investments by retailers in innovative services that benefit consumers.
Neither is possible when customers can change retailers with ease, and retailers face hit-and-run competition. If we want more competitive electricity markets, we need to encourage the right type of competition—by discouraging the wrong type.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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Tech
Dealing With Hearing Loss? These Over-the-Counter Hearing Aids Could Help
If you’re spending hundreds or thousands of dollars buying an OTC hearing aid, make sure you’re getting a product that offers a sustainable long-term solution to your hearing loss needs. Aside from the obvious things like sound quality, take a few minutes to look into these specs.
What size and style works best for you? Most hearing aids on the market are classified as either behind-the-ear (BTE) or in-the-ear (ITE). BTE hearing aids are probably what you think of when you picture a hearing aid, consisting of a plastic case that contains the electronics, a thin cable that goes over the ear and inside the canal, and a tiny speaker known as a “receiver,” which sends boosted audio from a person’s surroundings into their ear. By contrast, ITE models are self-contained units that look like a standard pair of wireless earbuds. In-the-ear hearing aids are popular for their incognito aesthetic, and they tend to be a lot easier to pop in and out than their behind-the-ear counterparts. Still, contemporary BTE hearing aids are significantly smaller than the ones “back in the day.” It just comes down to what fits you most comfortably.
Replaceable or rechargeable batteries? Much like wireless earbuds, most OTC hearing aids are equipped with rechargeable batteries and (usually) a portable charging case for easy transport. If you take the case’s battery life into account, you’ll find most OTC models last about a week before you need to connect to a power source. Without the case, rechargeable hearing aids offer anywhere from 10 to 24 hours of battery life per charge (but this goes down by a few hours if you’re using them to stream via Bluetooth). Replaceable batteries, such as those found on the Sony CRE-C10, can last for 70 hours or more before the battery dies. Sounds great, but it means having spares on hand and wrestling with tiny cells, which can be difficult for people with dexterity problems.
Are you comfortable making adjustments? While prescription hearing aids are fitted in-office by a licensed hearing care specialist, OTC devices are self-fitting. In most cases, OTC hearing aid users are expected to be able to tune the devices to their ears, usually with the help of a smartphone app. It’s certainly nice to make your own adjustments on the fly, but it may cost you in the way of personalized care.
What’s the company’s customer support like? If only you could count on quality support from every hearing aid manufacturer! Unfortunately, OTC hearing aid companies are just that—companies. There’s no “standard” for customer service in the industry. Companies like Jabra offer patients comprehensive support, but other brands may leave you on your own.
Is there a trial run? If you’re not happy with your hearing aids, you’ll probably want to have the option to return them without writing all that money off as a sunk cost. Most states require manufacturers to provide patients with a minimum trial period, but I recommend playing it safe by seeking out this info before buying.
What about warranties? Equally important to a reasonable trial period is the inclusion of a comprehensive manufacturer’s warranty. Most brands cover manufacturing defects for up to a year, but it goes without saying that the longer the coverage period, the better the deal. No matter which OTC hearing aid you end up with, make sure the warranty covers loss, damage, and wear and tear.
Tech
Gear News of the Week: There’s Yet Another New AI Browser, and Fujifilm Debuts the X-T30 III
An increasingly popular solution is the inclusion of a solar panel to keep that battery topped up, enabling you to install and potentially never touch the camera again. Both Wyze and TP-Link just revealed interesting solar-powered cameras this week. Let’s talk about Wyze first.
The Wyze Solar Cam Pan ($80) is a 2K outdoor security camera that can pan 360 degrees and tilt 70 degrees. It is IP65-rated, easy to mount, and sports a small solar panel that Wyze reckons can keep the camera running on just one hour of sunlight a day (we shall see as I test through the gray depths of a Scottish winter). The Solar Cam Pan also features AI-powered person tracking, two-way audio, color night vision, a spotlight, and a siren, though you need a subscription, starting from $3 per month, to unlock smart features and get cloud video storage.
Wyze also announced a new, impressively affordable Battery Video Doorbell ($66). We started testing Wyze cameras again recently after it beefed up its security policies, but the repeated security breaches, exposing thousands of camera feeds to other customers, may still give you pause.
Meanwhile, TP-Link is the first manufacturer to combine solar power with floodlight capability in its new Tapo C615F Kit. The similar-looking but larger Tapo C615F is another 2K camera, but it pans 360 degrees, tilts 130 degrees, and, most importantly, has an adjustable 800-lumen floodlight.
TP-Link says its solar panel only needs 45 minutes of sun a day to keep the camera ticking, and it comes with a handy 13-foot cable, so you can install the solar panel in the best spot to catch those rays. The Tapo C615F ($100) is available now, and you can use the promo code 10TAPOFLDCAM to get $10 off if you’re quick. —Simon Hill
Fujifilm Updates Its X-T30 Line
Courtesy of Fujifilm
Fujifilm has released the X-T30 III, an update to the company’s entry-level, SLR-shaped mirrorless X-T30 line. The third iteration of the X-T30 pairs Fujifilm’s familiar 26-MP X-Trans APS-C sensor with the latest Fujifilm processor, the X-Processor 5. The latter means that the X-T30 III is now roughly the same as the X-M5 and X-T50 in terms of internal features. All of Fujifilm’s film simulations are available, as are the subject-recognition AF modes. Video specs also see a bump up to 6.2K 30 fps open gate, and 4K 60 fps with a 1.18X crop.
The body is nearly identical to the previous model; the size, weight, and button/dial layout are the same as on the X-T30 II. The one change is that the control dial is now a film simulation dial, with three options for custom film recipes. The X-T30 III goes on sale in November at $999 for the body, or $1,150 for the body and a new 13- to 33-mm F3.5-6.3 zoom lens (20 mm- to 50 mm-equivalent). —Scott Gilbertson
Intel’s AI Experience Stores
In time for the peak shopping season, Intel is launching a variety of “AI Experience Stores” at a few key locations around the world. We don’t know exactly what they’ll be like, but Intel says these pop-ups will include an “AI-powered shopping experience” of some kind and are based on the initial launch of the trial run store in London last year.
If it keeps that same design ethos intact, these stores will be fairly immersive experiences. There will be lots of AI-driven demos on devices from the wider Windows laptop ecosystem, presumably to help drive interest and curiosity in what PCs can do. Interestingly, it comes on the back of a significant marketing push by Microsoft with its new Windows 11 AI experiences, trying to convince buyers to upgrade and explain some of the new AI features.
Here are the dates and locations below for when Intel’s stores will be open. —Luke Larsen
- New York City: 1251 6th Avenue (10/29 to 11/30)
- London: 95 Oxford Street (10/30 to 11/30)
- Munich: Viktualienmarkt 6 (10/30 to 12/9)
- Paris: 14 Boulevard Poissonniere (11/4 to 11/30)
- Seoul: OPUS 407, 1318-1 Seocho-dong (10/31 to 11/30)
Tech
What’s the Best Mattress for Sex? Our Reviewers Lay It Out for You
People take a lot of pride in their bedroom abilities. Saatva takes great pride in crafting luxurious, handmade mattresses. To maintain the good work in both situations, the Saatva Classic features an innerspring construction very conducive to lovemaking. There are actually two coil types at play here: pocketed coils beneath the pillow top, and firmer traditional coils at the base. Pocketed coils are better at responding to the situation above them, as they can provide individualized support that homes in on high-weight areas. Whether that’s your lower back while you’re sleeping, or your hands and knees when you’re more active, pocketed coils are adaptable. Traditional coils are interwoven, so they compress together. While the overall support isn’t as targeted, it still has its merits in terms of durability, edge support, full-body pushback, and airflow, particularly when things get hot and heavy. Together, they create a surface that’s easy to move around on and gives you some bounce to work with, which you’ll appreciate more in the moment as opposed to sinking too much. Use that bounce to your advantage.
Buyers can choose from Plush Soft, Luxury Firm, or Firm. I’d recommend you stick to the firmer options to avoid overt sinking, which can be a buzzkill. You can also select your ideal mattress height, with options of either 11.5 inches or 14.5 inches. The variance in firmness and height also opens up this mattress for all kinds of couples to enjoy, not just for sex but for sleeping as well. Couples with different body types and sleeping positions can find an option that works for both, such as Luxury Firm, which would suit both side sleepers and stomach sleepers. Every Saatva Classic comes with an extra lumbar support layer and quilting, regardless of height or firmness. For added coziness, the Classic features an organic cotton pillow top that gently hugs the body.
The Saatva Classic ranges from $1,399 for a twin mattress to $3,078 for a split California king.
| Mattress type | Innerspring hybrid |
| Firmness | Plush Soft, Luxury Firm, Firm |
| Height | 11.5 or 14.5 inches |
| Trial period | 365 nights |
| Warranty | Lifetime |
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