Why are some utilities unbundling their services?

Traditionally, electric utilities were vertically integrated. That is, they managed the generation, transmission and distribution of electricity. Lately, many provinces have separated these functions. This is called unbundling.

Generally these elements are now managed as separate business units. In some provinces they are run by Crown corporations. In Ontario, some of the elements have been sold to third parties.

Unbundling is motivated by a desire for greater efficiency. It is also driven by the interest in deregulating part or all of the electric industry.

Functional separation of the units has occurred in the following provinces:

• Alberta
• British Columbia
• Manitoba
• Ontario
• Quebec
• Saskatchewan