Deregulation and unbundling: the link: how deregulation and unbundling have made the electricity industry re-focus their thinking

This paper examines recent literature to give a background perspective on the link between deregulation and unbundling, using the electricity industry in Victoria (Australia) as an example. Deregulation generally results in increased competition in an industry. and unbundling occurs when the components of a provider's products and services are separated (unbundled) and available to the user. As a result of deregulation and unbundling, businesses need to understand more about their customers in order to differentiate themselves from their competitors by offering unique products and services. The electricity industry is undergoing deregulatory reform, and it serves as an interesting example to illustrate the processes.