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Performance evaluation and improvement directions for an Indian electric utility

Author

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  • Yadav, Vinod Kumar
  • Padhy, N.P.
  • Gupta, H.O.

Abstract

This study evaluates the performance of 29 Electricity Distribution Divisions (EDDs) of an Indian state – Uttarakhand – deploying Input oriented Data Envelopment Analysis (DEA). The results indicate that the performance of several EDDs is sub-optimal, suggesting the potential for cost reductions and possible reduction in employees number. In the DEA method more than one unit are identified as efficient. Therefore, this study suggests a method for ranking the efficient units by their importance as benchmarks for the inefficient units through benchmark share measure. The bigger the benchmark share, the more important an efficient division is in benchmarking for inefficient ones. Result reveals that plain area divisions are relatively efficient and have higher potential to influence the performance of inefficient EDDs. This study is envisaged to be instrumental to policy makers and managers to increase the operational efficiency of inefficient EDDs and thereby increase the competitiveness in the face of restructuring and liberalization of Indian electricity sector.

Suggested Citation

  • Yadav, Vinod Kumar & Padhy, N.P. & Gupta, H.O., 2011. "Performance evaluation and improvement directions for an Indian electric utility," Energy Policy, Elsevier, vol. 39(11), pages 7112-7120.
  • Handle: RePEc:eee:enepol:v:39:y:2011:i:11:p:7112-7120
    DOI: 10.1016/j.enpol.2011.08.028
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    References listed on IDEAS

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    Cited by:

    1. You, Yan Q. & Jie, Tao, 2016. "A study of the operation efficiency and cost performance indices of power-supply companies in China based on a dynamic network slacks-based measure model," Omega, Elsevier, vol. 60(C), pages 85-97.
    2. 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.
    3. Zakaria, Muhammad & Noureen, Rabia, 2016. "Benchmarking and regulation of power distribution companies in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 58(C), pages 1095-1099.
    4. Sharma, Naveen Kumar & Tiwari, Prashant Kumar & Sood, Yog Raj, 2013. "A comprehensive analysis of strategies, policies and development of hydropower in India: Special emphasis on small hydro power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 18(C), pages 460-470.
    5. Jamasb, Tooraj & Llorca, Manuel & Khetrapal, Pavan & Thakur, Tripta, 2018. "Institutions and Performance of Regulated Firms: Evidence from Electric Utilities in the Indian States," Efficiency Series Papers 2018/03, University of Oviedo, Department of Economics, Oviedo Efficiency Group (OEG).
    6. Fazıl Gökgöz & Ercem Erkul, 2014. "Energy Efficiency Analysis For The European Countries," Economy & Business Journal, International Scientific Publications, Bulgaria, vol. 8(1), pages 124-140.
    7. Congcong Yang & Alfred Taudes & Guozhi Dong, 2017. "Efficiency analysis of European Freight Villages: three peers for benchmarking," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(1), pages 91-122, March.
    8. repec:eee:eneeco:v:66:y:2017:i:c:p:279-289 is not listed on IDEAS

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