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Explaining the inefficiency of electrical distribution companies: Peruvian firms

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  • Pérez-Reyes, Raúl
  • Tovar, Beatriz

Abstract

This paper investigates the extent to which the structural reform of the Peruvian electricity market, implemented in the 1990s, has improved the efficiency of the distribution companies; and it evaluates the influence on efficiency of firm specific explanatory variables. To do this, we rely on data from 14 distribution companies between 1996 and 2006. The results indicate that the incentives generated by the reform process led to the firms becoming more efficient. Moreover, the time trend and private management of the distribution companies are variables that positively affect the levels of efficiency, whereas the lower network densities are then the greater the inefficiency.

Suggested Citation

  • Pérez-Reyes, Raúl & Tovar, Beatriz, 2010. "Explaining the inefficiency of electrical distribution companies: Peruvian firms," Energy Economics, Elsevier, vol. 32(5), pages 1175-1181, September.
    • Handle: RePEc:eee:eneeco:v:32:y:2010:i:5:p:1175-1181
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    1. Tooraj Jamasb & Rabindra Nepal & Govinda R. Tmilsina, 2017. "A Quarter Century Effort Yet to Come of Age: A Survey of Electricity Sector Reform in Developing Countries," The Energy Journal, , vol. 38(3), pages 195-234, May.
    2. Imam, M. & Jamasb, T. & Llorca, M., 2019. "Political Economy of Reform and Regulation in the Electricity Sector of Sub-Saharan Africa," Cambridge Working Papers in Economics 1949, Faculty of Economics, University of Cambridge.
    3. Pombo, Carlos & Taborda, Rodrigo, 2006. "Performance and efficiency in Colombia's power distribution system: Effects of the 1994 reform," Energy Economics, Elsevier, vol. 28(3), pages 339-369, May.
    4. Chang, Víctor & Tovar, Beatriz, 2017. "Metafrontier analysis on productivity for West Coast of South Pacific terminals," Transportation Research Part A: Policy and Practice, Elsevier, vol. 103(C), pages 118-134.
    5. Tooraj Jamasb & Rabindra Nepal & Govinda Timilsina & Michael Toman, 2014. "Energy Sector Reform, Economic Efficiency and Poverty Reduction," Discussion Papers Series 529, School of Economics, University of Queensland, Australia.
    6. Jamasb,Tooraj & Nepal,Rabindra & Timilsina,Govinda R., 2015. "A quarter century effort yet to come of age : a survey of power sector reforms in developing countries," Policy Research Working Paper Series 7330, The World Bank.

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