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

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  • 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
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Energy losses; loss & theft; electricity distribution; DEA;
    All these 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

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