A. Energy business in uk lead-in

• Make sure you understand the following essential terms of the unit. Practice their pronunciation.

generator supplier customer regulator transmission distribution grid competitive consumer wholesale

• Answer the questions.

1. Can you give the examples of energy suppliers in our country/city?

2. Can we switch our gas or electricity supplier in Russia?

3. How easy is it to do? What would encourage you to do it, or prevent you from doing it?

Text 1 the players of energy business in uk

Supplying energy to homes across the UK involves three key elements: making electricity through generation, transporting gas and electricity and selling it to the customer. Energy companies can work in any of these different areas, and some operate in all of three of them. The electricity and gas markets in the UK are privatized. This means that private companies make sure we have the energy that we need. It also means that customers can choose which companies supply their energy.

Electricity generation

Most electricity is generated at large power stations connected to the national transmission network. However, electricity can also be generated in smaller scale power stations which are connected to the regional distribution networks. There are many companies in the electricity generation sector, from large multinationals to small, family-owned businesses running a single site.

Transmission and distribution networks

There are two types of electricity network: transmission and distribution. Transmission networks carry electricity long distances around the country at high voltages. Distribution networks run at lower voltages and take electricity from the transmission system into homes and businesses.

National Grid

The grid plays a key role in the electricity system. Keeping the balance between supply and demand is an important task. This is vital because unlike gas, it is very difficult to store electricity. National Grid runs the grid system across Great Britain. It manages the flow of electricity across the entire network. It’s estimated that £30 billion is needed to modernize the grid. The ultimate aim is to have an improved so-called 'smart grid’ which would bring:

• More efficient transmission of electricity

• Faster electricity restoration after power disturbances

• Reduction in peak demand

• B etter integration of renewable energy generation – both small and large scale

Energy supply

Suppliers buy energy in the wholesale market and sell it on to customers. Suppliers work in a competitive market and customers can choose any supplier to provide them with gas and electricity. So, the market is liberalized.

Energy regulation

The electricity and gas markets are regulated by the Gas and Electricity Markets Authority, operating through the Office of Gas and Electricity Markets (Ofgem). In order to ensure that there is fair competition, the government has set up the regulator. Its main task is to ensure that there is non-discriminatory third-party access. The grid fees that the operators charge for using the networks are also controlled. When prices are increased by the supplier, this is also monitored by the regulator.