Functional separation definition

Functional separation means separating the costs of the electric company’s business functions and recording the results within its accounting records, including allocation of common costs.
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Functional separation means organisational separation of business units supplying upstream and downstream services together with associated controls to ensure that the units operate in practice on an “arm’s length” basis. It does not of itself require different legal ownership, as would result from “structural separation”.
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Functional separation means the formation of a separate business unit by an electric or gas public utility for purposes of offering competitive services permitted by N.J.S.A. 48:3-55(f) or N.J.S.A. 48:3-58(b) of the Act, which separate business unit shall be a related competitive business segment of an electric public utility or gas public utility as defined in this section and in the Act.
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Examples of Functional separation in a sentence

  • Functional separation has the capacity to improve competition in several relevant markets by significantly reducing the incentive for discrimination and by making it easier to verify and enforce compliance with non-discrimination obligations.

  • Functional separation is carried out on the basis of norms of the substantive and procedural law by entrusting it with certain tasks and independent powers and the measures and tools necessary for their implementation.

  • Functional separation has the capacity to improve competition in several relevant markets by significantly reducing the incentive for discrimination and by making it easier to verify and enforce compliance with non- discrimination obligations.

  • Functional separation has the capacity to improve competition in several relevant mar­ kets by significantly reducing the incentive for discrimina­ tion and by making it easier to verify and enforce compliance with non-discrimination obligations.

  • Functional separation would be a less radical intervention but still hold out the prospect of the creating new incentives for access to be supplied on an equal basis to all services operators.

  • All costs and expenses for conducting the audit shall be borne by the Seller, except that if the audit report shows that the Royalties were underpaid or overpaid by more than two percent (2%), then all costs and expenses for conducting the audit shall be borne by Buyer.

  • Functional separation need not require the establishment of different bodies and personnel for risk management and risk assessment.

  • Functional separation has several advantages: Because it impacts several access markets at the same time, functional separation could address in a single remedy some of the difficulties that arise from compartmentalised analysis of individual markets.

  • Functional separation means separating out the tasks that are carried out as part of risk assessment or risk management at the time when they are being performed.

  • Functional separation can also help to unblock the problem whereby dominant carriers can delay investments in access upgrades to avoid cannibalising existing downstream revenues, as is the case, for example, with broadband in countries where local loop unbundling is not available on a non-discriminatory basis.


More Definitions of Functional separation

Functional separation means requiring an incumbent operator to put the management of a local access network into an independent company within the parent company and allowing other operators fair access to the network.
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Functional separation means separating the costs of the electric company's
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Related to Functional separation

  • Operational Services the operational services described as such in the Services Description;

  • Supportive services means those services and activities provided in con- nection with minority business enter- prise programs which are designed to increase the total number of minority businesses active in the highway pro- gram and contribute to the growth and eventual self-sufficiency of individual minority businesses so that such busi- nesses may achieve proficiency to com- pete, on an equal basis, for contracts and subcontracts.

  • Implementation Services has the meaning set forth in Section 2.1.

  • Professional Services means those services within the scope of the practice of architecture, professional engineering, landscape architecture, or registered surveying and mapping, as defined by the laws of Florida, or those services performed by any architect, professional engineer, landscape architect, or registered surveyor and mapper, in connection with the firm's or individual's professional employment or practice.