Risk glossary

 

Unbundling

The separating of the various components of electricity production, supply and service, in order to introduce greater elements of competition to these segments of the industry.

‘Functional unbundling’ would require monopolistic utilities to provide access to their transmission and distribution network in exchange for an access fee. ‘Structural unbundling’ would require complete vertical disaggregation, so that monopolistic utilities would be required to divest either their generation assets or their transmission/distribution assets.

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