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Determinants of the economic performance of Brazilian electricity distributors

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  • Brandão, Roberto
  • Tolmasquim, Maurício T.
  • Maestrini, Marcelo
  • Tavares, Arthur Felipe
  • Castro, Nivalde J.
  • Ozorio, Luiz
  • Chaves, Ana Carolina

Abstract

This research aims to quantify the determinants of Brazilian Distribution System Operators (DSOs) economic performance. In this sense, seven cost and performance drivers of a DSO economic performance were defined. The contribution of each one to the actual DSO profit was measured by using Brazilian regulatory agency financial and operating data from 2009 to 2016. The analysis helps explain why Brazilian DSOs earnings have been, on average, lower than regulator-authorized earnings defined in the tariff review process over the last years, and the main determinant of it was the adverse effect on the market (2009 and 2014 to 2016), which was probably due to the economic crisis. Additionally, we have shown that part of the finance distress comes from electricity losses no recovery in tariff and we confirm that province-owned are prone to be less efficient than private utilities.

Suggested Citation

  • Brandão, Roberto & Tolmasquim, Maurício T. & Maestrini, Marcelo & Tavares, Arthur Felipe & Castro, Nivalde J. & Ozorio, Luiz & Chaves, Ana Carolina, 2021. "Determinants of the economic performance of Brazilian electricity distributors," Utilities Policy, Elsevier, vol. 68(C).
    • Handle: RePEc:eee:juipol:v:68:y:2021:i:c:s0957178720301351
    DOI: 10.1016/j.jup.2020.101142
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    More about this item

    Keywords

    Regulation; Electricity distribution; Economics performance;
    All these keywords.

    JEL classification:

    • H42 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Private Goods
    • K23 - Law and Economics - - Regulation and Business Law - - - Regulated Industries and Administrative Law
    • L33 - Industrial Organization - - Nonprofit Organizations and Public Enterprise - - - Comparison of Public and Private Enterprise and Nonprofit Institutions; Privatization; Contracting Out
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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