17 p.

41
On this picture, we can see how the electricity market operates. First and foremost,
electricity is produced or generated from various sources, such as power plants,
wind farms, and solar installations. Then, this generated electricity is fed to the
power grid, which is a network of transmission and distribution.
Independent electricity system operator is responsible for managing the electricity
system and ensuring its stable operation. Subsequently, this electricity is sold on
the wholesale market, where wholesale trading of large quantities of electricity
occurs between producers and suppliers.
In the electricity market, there are two types of electricity network: transmission
networks and distribution networks. Transmission networks are responsible for
transmitting electricity over long distances at high voltages, ensuring the efficient
transportation of electricity from production sources to consumption points.
Distribution networks operate at lower voltages and are responsible for delivering
electricity from the transmission system to households and businesses. Here,
retailers buy energy in or purchase electricity on the wholesale market.
Suppliers work in the market, buying electricity on the wholesale market and
supplying it to consumers. A unique feature of the electricity market is that
customers can choose – consumers have the option to select their supplier,
providing them with choices in terms of pricing and service.
Overall, the electricity market ensures a continuous flow of electricity from
production to consumers and creates a competitive environment that can benefit
consumers in terms of choice and pricing.

21 p. 43
Advantages:

Increased competition: Liberalization can lead to increased competition in the

energy market, which can drive down prices for consumers.
Innovation and efficiency: With competition, there is often an incentive for energy
companies to innovate and become more efficient in order to gain a competitive
edge.
Consumer choice: Liberalization can offer consumers more choice in terms of
energy providers and the types of energy they want to use.
Economic growth: A liberalized energy market can attract investment and
stimulate economic growth in the energy sector.
Disadvantages:

Market manipulation: Without proper regulations, liberalized energy markets can

be subject to manipulation by big players, leading to unfair practices and higher
prices.
Inequality: Liberalization may lead to disparities in energy access and
affordability, potentially leaving some consumers at a disadvantage.
Quality and reliability concerns: Some argue that liberalization could compromise
the quality and reliability of energy supply as providers prioritize cost-cutting over
service quality.
Environmental impact: Increased competition may lead to a focus on short-term
profits rather than long-term sustainability and environmental responsibility.
In conclusion, energy market liberalization can bring benefits such as lower prices
and increased innovation, but it also raises concerns about fairness, reliability, and
environmental impact.

Energy market liberalisation presents a complex landscape with advantages and

disadvantages. Striking the right balance through appropriate regulations is crucial
to harness the benefits while mitigating the drawbacks. It is important to consider
the unique circumstances of each region and adapt liberalisation strategies to
promote competition, innovation, and environmental responsibility.

Self-Check p. 44-45
Vocabulary:
1-с
2-a
3-d
4-a
5-a
Grammar:
1-c
2-d
3-a
4-b
5-d