Text 5. Electricity as a product for trade

Electric power is essential to modern life. It fuels much of indust-ry, the incubators of the new-born, the computers of the commodity trader and the railways of the commuter. It is an input to almost all goods and services.

Electricity has a number of features which distinguish it from other energy products and from most other commodities. First, electricity demand fluctuates in a daily and seasonal pattern, largely (but not entirely) due to the fact that much of it is consumed in weather-related uses (heating and cooling). Second, it is not storable in large amounts and at low cost, which means that power at one point in time is not a good substitute for power at another point in time. Third, the cost of load exceeding supply is considerable.

Another important feature of electricity demand is that it requires further transformation into the desired final form of energy: light, heat, cooling or motion power. This is due to the versatility of electric power. Hence, some of the input energies to electricity, e.g. natural gas, are also its competitors in end energy markets.

It is helpful to divide the supply side into four parts: generation, transmission, distribution and supply. Generation is the transformation of some other form of energy into electric energy. This transformation is performed either chemically through the combustion of fossil fuel such as coal, oil or gas, or physically through the use of nuclear fission, or kinetic energy from wind or water in motion.

Transmission is the high-voltage transport of electricity. Most modern transmission systems in industrialized nations are more or less densely meshed. This allows power exchanges over large distances and, thereby, establish an electricity system featuring power trade, least-cost operation of geographically dispersed plants, bundling of demand and pooling of reserve capacity. These features mean that in most locations, electricity traded over the grid is vastly cheaper than locally generated power. The transmission grid is a natural monopoly over a relatively large geographic area.The requirement for close coordination among operators of the transmission grid and generators gives rise to economies of vertical integration between these two parts of the industry.

Distribution is the low-voltage transport of electricity, generally from the transmission system to the end-user, or between generators and end users. Distribution often shows strong density of economies in urban agglomerations but diseconomies in remote areas. Distribution is a natural monopoly over given geographic areas.

Supply is the contracting for, and selling of, electricity to end-users. Supply also includes metering and billing, and can comprise activities such as customer information, advice and financing. Supply is not a natural monopoly. It can be wholesale (the purchase and sale of electricity from generators to resellers) or retail (the business of selling electricity to retail customers or end-users).

Exercise 58. Comment upon the structures of the following nouns. Give your own examples of word formation.

Commodity, electricity, feature, variation, transformation, versatility, structure, competitor, generation, transmission, capacity, distribution, difference, economy, diseconomy, customer, monopoly, density, development, heating.

Exercise 59. Give derivatives of the following words, translate the chains.

Model: produce – producer – production виробляти – виробник – виробництво

Supply, require, consume, heat, cool, generate, sell, use, retail, operate, transmit, distribute, trade, transform, resell.

Exercise 61. Translate the adverbs. Give their initial forms.

Largely, entirely, chemically, physically, geographically, vastly, locally, relatively, generally, densely, economically, rapidly.

Exercise 62. Explain the formation of the following words and translate them.

New-born, weather-related, superimposed, high-voltage, thereby, co-ordination, low-voltage, end-user, generated, dispersed, selling, billing, metering, pooling, consumed, meshed, wholesale, least-cost, input, storable, traded, reseller, industrialized.

Exercise 63. Translate ‘noun + noun’ word combinations.

Commodity trader, energy products, electricity demand, energy market, power trade, transmission system, customer information, input energy, electricity supply.

Exercise 64. Determine parts of speech of the following words and translate them.

Which, first, another, third, much, most, some, other, through, from, these, more, less, but, over, hence, either … or, cheaper, among, second, between, often, further, such as, due to, input.

Exercise 65. Match English-Ukrainian equivalents.

1. commodity 2. service 3. competitor 4. generator 5. trader 6. voltage 7. distribution 8. end-user 9. purchase 10. customer 11. wholesale supply 12. retail supply

a) роздрібне постачання b) торговець c) напруга d) гуртове постачання e) купівля f) споживач g) конкурент h) послугa i) кінцевий споживач j) товар k) збут l) виробник

Exercise 66. Translate into Ukrainian.

Distinguish from other energy products; fluctuate in a daily and seasonal pattern; not storable in large amounts; at another point in time; into the desired final form of energy; versatility of electric power; through the combustion of fossil fuel; use of nuclear fission; more or less densely meshed; exchanges over large distances; establish an electricity system; geographically dispersed plants; pooling of reserve capacity; urban agglomeration; business of selling electricity.

Exercise 67. Translate the following word combinations into Engli

Важливий для сучасного життя; товари та послуги; природна монополія; за низькою ціною; подальша передача; випадкові коливання; використання в залежності від погодних умов; перевищення норми постачання; передача електроенергії високої напруги; робота з меншими витратами; роздрібний покупець; вимірювання спожитої електроенергії за лічильником; сплачування за спожиту електроенергію; від виробника до кінцевого споживача.

Exercise 68. Match the terms and definitions.

Terms		Definitions
End-user	is	the business of purchasing electricity in bulk and selling it to retail customers.
Supply		a situation where one firm can produce a given level of output at a lower total cost than can any combination of multiple firms.
Generation		a retail customer of a natural gas or electricity product or service.
Wholesale supply		activity designed to supply electric power to customers.
Transmission		the process of converting primary energy (e.g. coal, gas, oil, stored water, wind and solar) into electricity.
Retail supply		the purchase of the electric power and sale of the electric power at the wholesale price to power suppliers.
Distribution		the process of transporting electric energy in bulk from a source of supply to other parts of the system or to other systems.
Fossil fuel		the process of transferring electricity from the transmission grid to final users.
Natural monopoly		any naturally occurring organic fuel, such as petroleum, coal and natural gas.

Exercise 69. Comment upon the statements.

1. Electric power is an input to almost all goods and services. 2.Some of the input energies to electricity are also its competitors in end energy markets. 3. An electricity system allows least-cost operation of geographically dispersed plants. 4. Distribution often shows strong density of economies in urban agglomerations but diseconomies in remote areas. 5. Supply can be wholesale or retail.

Exercise 70. Translate the following sentences into English.

1. Електроенергія має декілька характерних рис, які вирізня-ють її серед інших енергетичних продуктів та більшості інших продуктів споживання. 2. Попит на електроенергію змінюється за-лежно від змін погоди та пори року. 3. Електроенергію не можна зберігати у великій кількості за низькою ціною.4.Витрати за пере-вищене постачання електроенергії є значними. 5. Процес постачан-ня електроенергії поділяється на чотири частини: вироблення, передача, розподіл та пропозиція електроенергії кінцевому спожи-вачеві. 6. Вироблення електроенергії – це процес перетворення де-яких видів енергії в електричну енергію. 7. Процес транспортуван-ня електроенергії під високою напругою називається електропере-дачею. 8. Сучасні системи передачі електроенергії дозволяють здій-снювати обмін електроенергією на великих відстанях. 9. Електрое-нергія, що продається в електромережі, значно дешевша за електроенергію, що виробляється місцево. 10. Розподіл або збут електроенергії – це транспортування електроенергії низької напруги від системи електропередачі до кінцевого споживача або між виробниками і кінцевими споживачами. 11. Постачання передбачає заключення договору та продаж електроенергії кінцевому споживачеві.

Exercise 71. Match the synonyms or synonymous word combina-tions.

customer end-user goods purchase demand wholesale trader trader reseller competitor

wholesaler merchant buy dealer buyer contestant ultimate consumer requirement commodities

Exercise 72. Answer the questions on text 5.

1. Why is electric power essential to modern life? 2. What features of electricity distinguish it from other energy products and from most other commodities? 3. What parts is the supply side divided into? 4. What is electricity generation? 5. How is electricity transported?

6. What is electricity transmission? 7. How do modern transmission systems operate? 8. Why is electricity traded over the grid cheaper than locally generated power? 9. What is distribution? 10. How is distribution performed? 11. What does supply include? 12. What is wholesale and retail supply?

Exercise 73. Read and learn the following words and word combinations to text 6.

Area – територія

entitle – надавати право

dispatch – врегулювання; вирішення(питання)

exchange – біржа

pool – пул, об’єднання

engage – залучати

bilateral – двосторонній

performance – функціонування

framework – структура, систе

persistent – стійкий; постійний

imply – означати

scope – сфера (діяльності)

obvious – очевидний, явний, ясний

relevant – актуальний; важливий; релевантний

liberalize – скасовувати обмеження

convergence – збіг, зближення

share – 1) частина, частка; 2) акція, пай; 3) ділити (щось з кимсь);

розділяти; поділяти

introduction – введення

access – доступ

obligation – зобов’язання

unbundling – необмеженість

transaction – операція (торгова), трансакція

intermediary – посередник

constraint – обмеження

impose – нав’язувати (волю, рішення)

negotiate – проводити переговори, обговорювати

inspire – стимулювати; викликати (необхідність); надихати

Exercise 74. Read, translate and give the gist of text 6.