IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v283y2023ics0360544223019059.html
   My bibliography  Save this article

Crossing non-parametric and parametric techniques for measuring the efficiency: Evidence from 65 European electricity Distribution System Operators

Author

Listed:
  • Rita, Rui
  • Marques, Vitor
  • Bárbara, Diogo
  • Chaves, Inês
  • Macedo, Pedro
  • Moutinho, Victor
  • Pereira, Mariana

Abstract

Benchmarking techniques have been one of the main tools used by National Regulatory Authorities (NRA) to provide reliable information to define the efficiency targets for regulated undertakings. This paper aims to define the operational efficiency of the Portuguese mainland electricity Distribution System Operator (DSO), a monopoly incumbent with more than six million customers. Given the monopolistic nature of the electricity distribution activity in Portugal, the analysis was supported on a wide sample of 65 European DSO that operate in 16 European countries. This geographic spread required the use of different data harmonization procedures for an adequate use of different methodologies, namely Stochastic Frontier Analysis (SFA), Data Envelopment Analysis (DEA) and Total Productivity Indices (Malmquist), in order to guarantee robust results for the efficiency assessment. The study combines two outputs (number of supply points and network extension) and two inputs (operating costs and total costs) in different models. The results obtained are relatively positive for Portuguese DSO, placing the mainland DSO at efficiency levels between the 1st quartile and the efficiency frontier. There is a high correlation between DEA and SFA predicted efficiency scores, which supports the robustness of the analysis.

Suggested Citation

  • Rita, Rui & Marques, Vitor & Bárbara, Diogo & Chaves, Inês & Macedo, Pedro & Moutinho, Victor & Pereira, Mariana, 2023. "Crossing non-parametric and parametric techniques for measuring the efficiency: Evidence from 65 European electricity Distribution System Operators," Energy, Elsevier, vol. 283(C).
    • Handle: RePEc:eee:energy:v:283:y:2023:i:c:s0360544223019059
    DOI: 10.1016/j.energy.2023.128511
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223019059
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.128511?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:283:y:2023:i:c:s0360544223019059. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.