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In this case, ownership of the distribution company (DISCOM) lies with the government. Government-owned DISCOM can again be categorized into two categories, a single vertical structure and an unbundled (corporatized) structure. In the case of a single vertical structure, a single entity that is government owned performs all the tasks of power generation, transmission, and distribution. However, following the trends of reform, unbundling this single vertical structure led to segregation of generation, transmission, and distribution as distinct companies. Again this segregation was done either to single generation, single transmission, and single distribution companies or to multiple generation, multiple transmission, and multiple distribution companies. Some utilities unbundled their single vertical structure into two entities – one dedicated to transmission and another dedicated to both generation and distribution. Similarly, some utilities unbundled their single vertical structure into two entities – one dedicated to generation and another dedicated to both transmission and distribution. Figures 1.2 and 1.3 show various forms of government owned distribution companies.

Figure 1.2 Single vertical structure.

Figure 1.3 Unbundled structure.

From Figure 1.2, it is clear that the task of generation, transmission, and distribution is under the purview of a single entity, irrespective of whether there are single or multiple subsidiaries in generation or transmission or distribution.

Figure 1.3 consists of six different blocks where all the six blocks represent a distinct pattern of unbundled power distribution structure. In the first block, more than one subsidiary are being shown for both the generation and distribution segments whereas transmission has been shown as a single subsidiary because most of the countries kept a single transmission utility while undergoing unbundling. Although a vertical integrated structure and unbundled (corporatized) structures are different in structures no significant differences are found in their operations and functions. The relative concerns relating to this model are:

 High technical losses in distribution.

 No theft handling mechanism.

 No proper fault handling mechanism.

 Lack of sourcing and management.

 Overstaffing.

 Poor collection efficiency.

 High rate of outages, blackouts, device failures, etc.

 Losses are not established.

 Commercial losses are not accountable.

 No outage handling and transactional mechanisms.

 Lack of enterprise resource planning (ERP) practice.

 Poor managerial efficiency.

 High fiscal deficit.

 No asset management and facility management.

 High political interferences.