IDEAS home Printed from https://ideas.repec.org/a/arv/journl/v1y2023i1p75-88.html

Loss Per Consumer approach for efficiency analysis of Turkish Electricity Distribution Companies by Using DEA

Author

Listed:
  • Tamer Emre

Abstract

The performance evaluation of electricity distribution companies has been extensively studied in the last two decades. These evaluations have been conducted in structures managed through a tariff system and have been approached from various perspectives. With liberalization, privatization, and increasing transparency in the markets, access to data, which is one of the major challenges in this field, has been improved. Energy losses have been a crucial factor in the performance evaluation of electricity distribution companies in Turkey. This article proposes using the Loss Per Consumer (LPC) index, rather than the conventional percentage representation, as a more effective tool for monitoring, evaluation, and setting targets. A data envelopment analysis (DEA) method was applied to the 2020 data of electricity distribution companies to perform an output-oriented efficiency assessment. The analysis makes use of energy losses, interruption time, interruption frequency, and loss rate (with both percentage and LPC options) as outputs and line length, transformer capacity, number of transformers and consumers, and energy invoiced as inputs. The results suggest that the LPC method offers better scalability for efficiency evaluations and the follow-up studies could further elucidate this issue by focusing on provinces and additional consumer groups.

Suggested Citation

  • Tamer Emre, 2023. "Loss Per Consumer approach for efficiency analysis of Turkish Electricity Distribution Companies by Using DEA," Journal of Sustainable Development Issues (JOSDI), SDIjournals, vol. 1(1), pages 75-88, December.
    • Handle: RePEc:arv:journl:v:1:y:2023:i:1:p:75-88
    DOI: 10.62433/josdi.v1i1.13
    as

    Download full text from publisher

    File URL: https://journalsdi.com/index.php/jsdi/article/view/13/6
    Download Restriction: no
    File URL: https://journalsdi.com/index.php/jsdi/article/view/13
    Download Restriction: no
    File URL: https://libkey.io/10.62433/josdi.v1i1.13?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
    ---><---

    References listed on IDEAS

    as
    1. Ulusoy, Ali & Oguz, Fuat, 2007. "The privatization of electricity distribution in Turkey: A legal and economic analysis," Energy Policy, Elsevier, vol. 35(10), pages 5021-5034, October.
    2. Weyman-Jones, Thomas G., 1991. "Productive efficiency in a regulated industry : The area electricity boards of England and Wales," Energy Economics, Elsevier, vol. 13(2), pages 116-122, April.
    3. Tamer Emre & Adnan Sozen, 2022. "Energy Poverty Clustering by Using Power-cut Job Order Data of the Electricity Distribution Companies," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 401-409, May.
    4. Bhattacharyya, Subhes C., 2005. "The Electricity Act 2003: will it transform the Indian power sector?," Utilities Policy, Elsevier, vol. 13(3), pages 260-272, September.
    5. S P Santos & C A F Amado & J R Rosado, 2011. "Formative evaluation of electricity distribution utilities using data envelopment analysis," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 62(7), pages 1298-1319, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Emre, Tamer, 2025. "Hidden subsidies and behavioral targeting: Insights from Türkiye's three-pillar energy poverty strategy (2019–2023)," Utilities Policy, Elsevier, vol. 97(C).
    2. Hasan Dinçer & Serhat Yüksel & Serkan Eti & Merve Acar, 2024. "Pathways to Energy Independence: Spherical Fuzzy Modeling for Decision Making in Energy Investments," Journal of Sustainable Development Issues (JOSDI), SDIjournals, vol. 2(1), pages 1-10, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ali Akkemik, K., 2009. "Cost function estimates, scale economies and technological progress in the Turkish electricity generation sector," Energy Policy, Elsevier, vol. 37(1), pages 204-213, January.
    2. Yurtseven, Çağlar, 2015. "The causes of electricity theft: An econometric analysis of the case of Turkey," Utilities Policy, Elsevier, vol. 37(C), pages 70-78.
    3. Sueyoshi, Toshiyuki & Yuan, Yan & Goto, Mika, 2017. "A literature study for DEA applied to energy and environment," Energy Economics, Elsevier, vol. 62(C), pages 104-124.
    4. Shrivastava, Naveen & Sharma, Seema & Chauhan, Kavita, 2012. "Efficiency assessment and benchmarking of thermal power plants in India," Energy Policy, Elsevier, vol. 40(C), pages 159-176.
    5. Bhatt, Brijesh & Singh, Anoop, 2021. "Power sector reforms and technology adoption in the Indian electricity distribution sector," Energy, Elsevier, vol. 215(PA).
    6. Faisal Jamil & Fawad Khan, 2021. "Fiscal devolution and energy sector performance in Pakistan," Economics Bulletin, AccessEcon, vol. 41(3), pages 1747-1762.
    7. Mirza, Faisal Mehmood & Mushtaq, Iqra & Ullah, Kafait, 2017. "Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan," Utilities Policy, Elsevier, vol. 47(C), pages 18-28.
    8. Patyal, Vishal Singh & Kumar, Ravi & Lamba, Kuldeep & Maheshwari, Sunil, 2023. "Performance evaluation of Indian electricity distribution companies: An integrated DEA-IRP-TOPSIS approach," Energy Economics, Elsevier, vol. 124(C).
    9. Lam, Pun-Lee & Shiu, Alice, 2001. "A data envelopment analysis of the efficiency of China's thermal power generation," Utilities Policy, Elsevier, vol. 10(2), pages 75-83, June.
    10. See, Kok Fong & Coelli, Tim, 2014. "Total factor productivity analysis of a single vertically integrated electricity utility in Malaysia using a Törnqvist index method," Utilities Policy, Elsevier, vol. 28(C), pages 62-72.
    11. López-González, A. & Domenech, B. & Ferrer-Martí, L., 2018. "Formative evaluation of sustainability in rural electrification programs from a management perspective: A case study from Venezuela," Renewable and Sustainable Energy Reviews, Elsevier, vol. 95(C), pages 95-109.
    12. Tugba Somuncu & Christopher Hannum, 2018. "The Rebound Effect of Energy Efficiency Policy in the Presence of Energy Theft," Energies, MDPI, vol. 11(12), pages 1-28, December.
    13. Bölük, Gülden & Koç, A. Ali, 2010. "Electricity demand of manufacturing sector in Turkey: A translog cost approach," Energy Economics, Elsevier, vol. 32(3), pages 609-615, May.
    14. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    15. Podinovski, Victor V. & Bouzdine-Chameeva, Tatiana, 2016. "On single-stage DEA models with weight restrictions," European Journal of Operational Research, Elsevier, vol. 248(3), pages 1044-1050.
    16. Ramos-Real, Francisco Javier & Tovar, Beatriz & Iootty, Mariana & de Almeida, Edmar Fagundes & Pinto Jr., Helder Queiroz, 2009. "The evolution and main determinants of productivity in Brazilian electricity distribution 1998-2005: An empirical analysis," Energy Economics, Elsevier, vol. 31(2), pages 298-305, March.
    17. Fuat Oğuz, 2010. "Competition by regulation in energy markets: the case of Turkey," European Journal of Law and Economics, Springer, vol. 30(1), pages 41-58, August.
    18. Amado, Carla A.F. & Santos, Sérgio P. & Sequeira, João F.C., 2013. "Using Data Envelopment Analysis to support the design of process improvement interventions in electricity distribution," European Journal of Operational Research, Elsevier, vol. 228(1), pages 226-235.
    19. Yunos, Jamaluddin Mohd & Hawdon, David, 1997. "The efficiency of the National Electricity Board in Malaysia: An intercountry comparison using DEA," Energy Economics, Elsevier, vol. 19(2), pages 255-269, May.
    20. Bai-Chen, Xie & Ying, Fan & Qian-Qian, Qu, 2012. "Does generation form influence environmental efficiency performance? An analysis of China’s power system," Applied Energy, Elsevier, vol. 96(C), pages 261-271.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    JEL classification:

    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

    Statistics

    Access and download statistics

    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:arv:journl:v:1:y:2023:i:1:p:75-88. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Shahriyar Mukhtarov (email available below). General contact details of provider: .

    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.