Definitions for "Unbundled Services"
A method of accounting or reimbursing for services on the basis of individual service components instead of using an all-inclusive rate covering all specified services. Fee for service is an example of unbundled rates.
The selling and pricing of energy services separately as opposed to offering services “bundled” into packages with a single price for the whole package. With unbundling, separate fees are charged for each service, based upon only the costs of providing that service (i.e., transportation, storage, generation, production, etc.).
Unbundling refers to the process of desegregating electric utility services into basic components and offering each component for sale, with separate charges for each component. Some services may be regulated and others are subject to competition. Some services may be mandatory (meaning all customers must buy them) and others may be optional (customers have a choice whether or not to buy them, and often from whom). Once unbundled, various electric utility and competitive services may be listed on customer bills as separate line items (see “Bundled Services”).