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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.

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  • 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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    Cited by:

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    5. Arvian Triantoro & Muhammad Zaheer Akhtar & Shiraz Khan & Khalid Zaman & Haroon ur Rashid Khan & Abdul Wahab Pathath & Muhamad Amar Mahmad & Kamil Sertoglu, 2023. "Riding the Waves of Fluctuating Oil Prices: Decoding the Impact on Economic Growth," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 34-50, March.
    6. 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.
    7. Mirza, Faisal Mehmood & Rizvi, Syed Badar-Ul-Husnain & Bergland, Olvar, 2021. "Service quality, technical efficiency and total factor productivity growth in Pakistan's post-reform electricity distribution companies," Utilities Policy, Elsevier, vol. 68(C).
    8. 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.
    9. Mirza, Faisal Mehmood & Mushtaq, Iqra, 2022. "Estimating the marginal cost of improving services quality in electricity distribution utilities of Pakistan," Energy Policy, Elsevier, vol. 167(C).

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