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Benchmarking and regulation of power distribution companies in Pakistan

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  • Zakaria, Muhammad
  • Noureen, Rabia

Abstract

Using stochastic frontier analysis the study examines the cost effectiveness of electricity distribution utilities in Pakistan. For this purpose cost (in)efficiency is calculated for 8 distribution utilities using data for the period 2003–2013. The findings reveal that on average there is 72.5% efficiency in the electricity distribution sector. It indicates that electricity distribution utilities in Pakistan are cost inefficient by 27.5%. It is also found that quality of service affects efficiency. The results imply that there is significant potential to improve efficiency of electricity distribution utilities and that quality of service should be incorporated as part of efficiency of the electricity distribution utilities in Pakistan.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:rensus:v:58:y:2016:i:c:p:1095-1099
    DOI: 10.1016/j.rser.2015.12.232
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    References listed on IDEAS

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    Cited by:

    1. Qazi, Usama & Jahanzaib, Mirza & Ahmad, Wasim & Hussain, Salman, 2017. "An institutional framework for the development of sustainable and competitive power market in Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 83-95.
    2. 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.
    3. Iqbal, Jamshed & Khan, Zeashan Hameed, 2017. "The potential role of renewable energy sources in robot's power system: A case study of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 106-122.

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