IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v93y2025ics0957178724001759.html
   My bibliography  Save this article

A clustering scheme for performance benchmarking in the regulation of electric distribution utilities in Iran

Author

Listed:
  • Pourheydari, Mohammad
  • Gholizadeh, Mahyar
  • Sadeghi, Shakiba
  • Hojjati, Ashkan
  • Goltapeh, Fatemeh

Abstract

In electric distribution company (DisCos) performance, the effect of imposed features such as network size, economic progress, and geographical conditions is considerable. In this research, K-means clustering is used to model the impact of imposed characteristics in the benchmarking analysis. Commonly, benchmarking studies are focused on DisCos at the outcome stage. However, the efficiency of working processes is as crucial as the outcomes in every organization. This paper proposes a novel combinatorial method integrating quantitative and qualitative measures to benchmark DisCos in both outcome and process stages. In the quantitative section, DisCos’ outcomes are benchmarked through key performance indicators (KPIs). In the qualitative section, utilizing balanced scorecards (BSCs) for measuring the efficiency of DisCos at the process stage is suggested. Ranking under study DisCos, a scoring model based on the normalized summation of obtained scores from KPIs and BSCs, is formulated. Monitoring DisCos’ performance specifically under each of the performance fields in addition to the consequent efficiency scores is attended for analyzing benchmarking results. Eventually, a knowledge management scheme is suggested. Under this framework, each DisCo’s true performance instance is incorporated to gain insights from the accomplishments of similar utilities. This study is useful in regulatory programs for identifying the weaknesses and strengths of utilities or even regulators toward strategic targets, presenting a performance basis, and reducing the performance gaps between utilities.

Suggested Citation

  • Pourheydari, Mohammad & Gholizadeh, Mahyar & Sadeghi, Shakiba & Hojjati, Ashkan & Goltapeh, Fatemeh, 2025. "A clustering scheme for performance benchmarking in the regulation of electric distribution utilities in Iran," Utilities Policy, Elsevier, vol. 93(C).
  • Handle: RePEc:eee:juipol:v:93:y:2025:i:c:s0957178724001759
    DOI: 10.1016/j.jup.2024.101881
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178724001759
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.jup.2024.101881?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

    for a different version of it.

    References listed on IDEAS

    as
    1. Per Andersen & Niels Christian Petersen, 1993. "A Procedure for Ranking Efficient Units in Data Envelopment Analysis," Management Science, INFORMS, vol. 39(10), pages 1261-1264, October.
    2. Astrid Cullmann & Hélène Crespo & Marie-Anne Plagnet, 2008. "International Benchmarking in Electricity Distribution: A Comparison of French and German Utilities," Discussion Papers of DIW Berlin 830, DIW Berlin, German Institute for Economic Research.
    3. L sara Fabr cia Rodrigues & Matheus Alves Madeira de Souza & Thamara Paula dos Santos Dias, 2017. "Performance Assessment of Brazilian Power Transmission and Distribution Segments using Data Envelopment Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 14-23.
    4. Léopold Simar & Paul W. Wilson, 1998. "Sensitivity Analysis of Efficiency Scores: How to Bootstrap in Nonparametric Frontier Models," Management Science, INFORMS, vol. 44(1), pages 49-61, January.
    5. 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).
    6. Petridis, Konstantinos & Ünsal, Mehmet Güray & Dey, Prasanta Kumar & Örkcü, H. Hasan, 2019. "A novel network data envelopment analysis model for performance measurement of Turkish electric distribution companies," Energy, Elsevier, vol. 174(C), pages 985-998.
    7. 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.
    8. Jamasb, Tooraj & Pollitt, Michael, 2008. "Reference models and incentive regulation of electricity distribution networks: An evaluation of Sweden's Network Performance Assessment Model (NPAM)," Energy Policy, Elsevier, vol. 36(5), pages 1788-1801, May.
    9. Núñez, F. & Arcos-Vargas, A. & Villa, G., 2020. "Efficiency benchmarking and remuneration of Spanish electricity distribution companies," Utilities Policy, Elsevier, vol. 67(C).
    10. Alireza Khosravi & Mohammad Fallah & Seyyed Esmaeil Najafi & Ching-Feng Wen, 2021. "An EFQM-Fuzzy Network Data Envelopment Analysis Model for Efficiency Assessment in Organizations," Journal of Mathematics, Hindawi, vol. 2021, pages 1-17, September.
    11. Daraio, Cinzia & Di Leo, Simone & Simar, Léopold, 2024. "Viable eco‐efficiency targets for waste collection communities," LIDAM Reprints ISBA 2024027, Université catholique de Louvain, Institute of Statistics, Biostatistics and Actuarial Sciences (ISBA).
    12. Capece, Guendalina & Cricelli, Livio & Di Pillo, Francesca & Levialdi, Nathan, 2012. "New regulatory policies in Italy: Impact on financial results, on liquidity and profitability of natural gas retail companies," Utilities Policy, Elsevier, vol. 23(C), pages 90-98.
    Full references (including those not matched with items on IDEAS)

    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. Yuan, Peng & Pu, Yuran & Liu, Chang, 2021. "Improving electricity supply reliability in China: Cost and incentive regulation," Energy, Elsevier, vol. 237(C).
    2. Yadava, Anup Kumar & Chakraborty, Soumyajit & Gupta, Sonal, 2025. "Benchmarking the performance of Indian electricity distribution companies: The applications of multi-stage robust DEA and SFA models," Energy Economics, Elsevier, vol. 145(C).
    3. Mohammad Tavassoli & Mahsa Ghandehari & Masoud Taherinia, 2023. "Rang-adjusted measure: modelling and computational aspects from internal and external perspectives for network DEA," Operational Research, Springer, vol. 23(4), pages 1-34, December.
    4. Kristof De Witte & Rui Marques, 2010. "Designing performance incentives, an international benchmark study in the water sector," 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. 18(2), pages 189-220, June.
    5. Zervopoulos, Panagiotis & Emrouznejad, Ali & Sklavos, Sokratis, 2019. "A Bayesian approach for correcting bias of data envelopment analysis estimators," MPRA Paper 91886, University Library of Munich, Germany.
    6. Dag Edvardsen & Finn Førsund & Sverre Kittelsen, 2008. "Far out or alone in the crowd: a taxonomy of peers in DEA," Journal of Productivity Analysis, Springer, vol. 29(3), pages 201-210, June.
    7. Mahmoudi, Reza & Emrouznejad, Ali & Shetab-Boushehri, Seyyed-Nader & Hejazi, Seyed Reza, 2020. "The origins, development and future directions of data envelopment analysis approach in transportation systems," Socio-Economic Planning Sciences, Elsevier, vol. 69(C).
    8. Alda A. Henriques & Milton Fontes & Ana S. Camanho & Giovanna D’Inverno & Pedro Amorim & Jaime Gabriel Silva, 2022. "Performance evaluation of problematic samples: a robust nonparametric approach for wastewater treatment plants," Annals of Operations Research, Springer, vol. 315(1), pages 193-220, August.
    9. Esteve, Miriam & Aparicio, Juan & Rodriguez-Sala, Jesus J. & Zhu, Joe, 2023. "Random Forests and the measurement of super-efficiency in the context of Free Disposal Hull," European Journal of Operational Research, Elsevier, vol. 304(2), pages 729-744.
    10. Greco, Salvatore & Ishizaka, Alessio & Tasiou, Menelaos & Torrisi, Gianpiero, 2019. "Sigma-Mu efficiency analysis: A methodology for evaluating units through composite indicators," European Journal of Operational Research, Elsevier, vol. 278(3), pages 942-960.
    11. Dag Fjeld Edvardsen & Finn R. Førsund & Sverre A. C. Kittelsen, 2017. "Productivity development of Norwegian institutions of higher education 2004–2013," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 68(4), pages 399-415, April.
    12. Dong, Hanjiang & Wang, Xiuyuan & Cui, Ziyu & Zhu, Jizhong & Li, Shenglin & Yu, Changyuan, 2025. "Machine learning-enhanced Data Envelopment Analysis via multi-objective variable selection for benchmarking combined electricity distribution performance," Energy Economics, Elsevier, vol. 143(C).
    13. Bornmann, Lutz & Gralka, Sabine & Anegón, Félix de Moya & Wohlrabe, Klaus, 2023. "Efficiency of universities and research-focused institutions worldwide: The introduction of a new input indicator reflecting institutional staff numbers," Journal of Informetrics, Elsevier, vol. 17(2).
    14. Carlos Barros & Pedro Garcia-del-Barrio, 2011. "Productivity drivers and market dynamics in the Spanish first division football league," Journal of Productivity Analysis, Springer, vol. 35(1), pages 5-13, February.
    15. Agrell, Per J. & Brea-Solís, Humberto, 2017. "Capturing heterogeneity in electricity distribution operations: A critical review of latent class modelling," Energy Policy, Elsevier, vol. 104(C), pages 361-372.
    16. Holger Scheel & Stefan Scholtes, 2003. "Continuity of DEA Efficiency Measures," Operations Research, INFORMS, vol. 51(1), pages 149-159, February.
    17. Ebrahimi, Bohlool & Dhamotharan, Lalitha & Ghasemi, Mohammad Reza & Charles, Vincent, 2022. "A cross-inefficiency approach based on the deviation variables framework," Omega, Elsevier, vol. 111(C).
    18. Shuji Yao & Zhongwei Han & Dan Luo, 2010. "Performance of the Chinese Insurance Industry under Economic Reforms," Books, Edward Elgar Publishing, number 12788.
    19. Raul Moragues & Juan Aparicio & Miriam Esteve, 2023. "Ranking the Importance of Variables in a Nonparametric Frontier Analysis Using Unsupervised Machine Learning Techniques," Mathematics, MDPI, vol. 11(11), pages 1-24, June.
    20. Halkos, George & Tzeremes, Nickolaos, 2007. "Examining the relationship between firm internationalization and firm performance: A nonparametric analysis," MPRA Paper 32082, University Library of Munich, Germany.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;
    ;

    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:eee:juipol:v:93:y:2025:i:c:s0957178724001759. 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: Catherine Liu (email available below). General contact details of provider: https://www.sciencedirect.com/journal/utilities-policy .

    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.