Can someone explain how this works?

I presume one end is plugged in to the mains near, and connected to, the router through a normal ethernet port and then the other is put anywhere else in the house just in a mains socket?

Not too sure about the wiring of the house, does it have to be on the same ring and if so how do i find out which sockets are connected?

Are there any side effects on other electrical equipment plugged into the same ring?

Thanks for your responses :)
 
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