Prior to deregulation, distribution of energy (the transporting of energy from high-voltage transmission systems to end-use customers) was typically handled by an integrated company which produced, delivered, marketed and billed customers. In deregulated markets, distribution is expected to be handled by separate, distinct entities that specialize in this aspect of energy provision. Privately-owned entities who provide this service are referred to as distribution companies or DISCOs, or occasionally as wires companies. When a municipality, region or other non-profit group provides their own distribution services, the provider is referred to as a distribution utility.

Services provided by a DISCO include the maintenance of connection points with high-voltage transmission networks, arrangement of emergency and reserve energy, meter reading and maintenance (but not necessarily billing). DISCOs may also serve as aggregators, billing and collection services and demand-side management (DSM) consultants, in addition to operating and maintaining transformers, substations, service poles and local power lines.

May also be spelled Disco, DisCo, or disco.

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