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Evaluation of technical efficiency of Brazilian distribution companies of electrical energy through Data Envelopment Analysis (DEA)

Author

Listed:
  • Vanessa de Quadros Martins

    (Universidade do Vale do Rio dos Sinos, Brazil)

  • Carlos Alberto Diehl

    (Universidade do Vale do Rio dos Sinos, Brazil)

  • Cristiano R. Maurício Tagliari

    (Universidade do Vale do Rio dos Sinos, Brazil)

Abstract

The Brazilian Provisional Act No. 579/2012 established a significant change in the rules applied to the electric energy sector, in particular in relation to the renewal of concessions of power generation, transmission and distribution of power from those who have contract termination between 2013 and 2017. Besides this measure, the electric energy distributors are going through the third Cycle of Periodic Tariff Review, a fact that also foresees the reduction of charges imposed on the electricity, thereby requiring a greater efficiency of its management. Thus, this research analyses the technical efficiency on the electric energy distribution companies. This is a study with a quantitative approach, based on data from 2012.With the application of Data Envelopment Analysis, we determined the relative technical efficiency of 18 companies of the population. The relative technical efficiency reached a score of 100% in seven of the 18 companies analyzed. Efficient firms are spread across Brazil, with a greater concentration in the Southeast. The Municipal Human Development Index, the size of the concession area and the extent of distribution network, as well as the population density are not explanatory to the attainment of efficiency factors.

Suggested Citation

  • Vanessa de Quadros Martins & Carlos Alberto Diehl & Cristiano R. Maurício Tagliari, 2018. "Evaluation of technical efficiency of Brazilian distribution companies of electrical energy through Data Envelopment Analysis (DEA)," Contaduría y Administración, Accounting and Management, vol. 63(1), pages 31-32, Enero - M.
    • Handle: RePEc:nax:conyad:v:63:y:2018:i:1:p:31-32
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    References listed on IDEAS

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    More about this item

    Keywords

    Technical Efficiency; Data Envelopment Analysis; Electric Energy Sector; Brazilian Companies.;
    All these keywords.

    JEL classification:

    • M41 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Accounting - - - Accounting
    • D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation

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