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Quality of Supply and Efficiency: An Analysis of Portuguese Electricity Distribution Networks

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Listed:
  • Thomas WEYMAN-JONES
  • Júlia Mendonça BOUCINHA
  • Catarina Féteira INÁCIO

Abstract

Efficiency and productivity analysis is a standard part of the tool-box of electricity and gas network regulators. In this paper the data envelopment analysis approach to benchmarking the performance of electricity networks is applied to a group of regional networks which differ in the quality of supply measured by, for example, interruptions. We show that efficiency comparisons differ when quality of supply is allowed for. We extend the efficiency comparisons to construct quality-adjusted Malmquist productivity indices in a manner which can be employed in both intra-firm management review and in regulatory benchmarking.

Suggested Citation

  • Thomas WEYMAN-JONES & Júlia Mendonça BOUCINHA & Catarina Féteira INÁCIO, 2010. "Quality of Supply and Efficiency: An Analysis of Portuguese Electricity Distribution Networks," Sosyoekonomi Journal, Sosyoekonomi Society, issue 2010-EN.
    • Handle: RePEc:sos:sosjrn:10en08
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    References listed on IDEAS

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    1. Christian Growitsch & Tooraj Jamasb & Michael Pollitt, 2009. "Quality of service, efficiency and scale in network industries: an analysis of European electricity distribution," Applied Economics, Taylor & Francis Journals, vol. 41(20), pages 2555-2570.
    2. Tim Coelli & Antonio Estache & Sergio Perelman & Lourdes Trujillo, 2003. "A Primer on Efficiency Measurement for Utilities and Transport Regulators," World Bank Publications - Books, The World Bank Group, number 15149.
    3. Ray,Subhash C., 2012. "Data Envelopment Analysis," Cambridge Books, Cambridge University Press, number 9781107405264, September.
    4. Jamasb, T. & Pollitt, M., 2000. "Benchmarking and regulation: international electricity experience," Utilities Policy, Elsevier, vol. 9(3), pages 107-130, September.
    5. Giannakis, Dimitrios & Jamasb, Tooraj & Pollitt, Michael, 2005. "Benchmarking and incentive regulation of quality of service: an application to the UK electricity distribution networks," Energy Policy, Elsevier, vol. 33(17), pages 2256-2271, November.
    6. Necmiddin Bagdadioglu & Catherine Waddams Price & Thomas Weyman-Jones, 2007. "Measuring Potential Gains from Mergers among Electricity Distribution Companies in Turkey using a Non-Parametric Model," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 83-110.
    7. Scheel, Holger, 2001. "Undesirable outputs in efficiency valuations," European Journal of Operational Research, Elsevier, vol. 132(2), pages 400-410, July.
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    Cited by:

    1. Gouveia, M.C. & Dias, L.C. & Antunes, C.H. & Boucinha, J. & Inácio, C.F., 2015. "Benchmarking of maintenance and outage repair in an electricity distribution company using the value-based DEA method," Omega, Elsevier, vol. 53(C), pages 104-114.

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    More about this item

    Keywords

    Regulation and Industrial Policy; Electricity Distribution; Supply Quality.;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L51 - Industrial Organization - - Regulation and Industrial Policy - - - Economics of Regulation
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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