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Financial sustainability disparities among energy distribution companies: a multi-factor study case in Brazil

Author

Listed:
  • Álvaro L. Ferreira

    (Universidade Federal de Minas Gerais)

  • Tomás C. de Castro

    (Universidade Federal de Minas Gerais)

  • Marcelo A. Costa

    (Companhia Energética de Minas Gerais)

  • Sérgio H. R. Ribeiro

    (Companhia Energética de Minas Gerais)

  • Iguatinan G. Monteiro

    (Companhia Energética de Minas Gerais)

Abstract

The main objective of this paper is to assess how the financial–economic sustainability of the electricity distribution sector in Brazil has evolved and what factors might be causing performance discrepancies among the Distributed System Operators (DSOs). We have employed several graphical analysis techniques and Ordinal Logistic Regression Models for the eight most important indicators defined by the National Electric Energy Agency (ANEEL). We find that there are consistent discrepancies among DSOs with different control types (public and private) and from different regions. Results show the struggle of public-controlled DSOs and of DSOs located in specific regions to achieve good performances. We conclude that ANEEL must consider the impact of these factors when comparing and evaluating the sustainability results from DSOs.

Suggested Citation

  • Álvaro L. Ferreira & Tomás C. de Castro & Marcelo A. Costa & Sérgio H. R. Ribeiro & Iguatinan G. Monteiro, 2023. "Financial sustainability disparities among energy distribution companies: a multi-factor study case in Brazil," SN Business & Economics, Springer, vol. 3(7), pages 1-35, July.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:7:d:10.1007_s43546-023-00484-7
    DOI: 10.1007/s43546-023-00484-7
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    References listed on IDEAS

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