Analysis of the relative technical efficiency of Brazilian electricity distribution companies: a DEA approach

Abstract

This article analyzes the relative technical efficiency of Brazilian electricity distribution companies. The search for efficiency has been steady in many sectors and the industry now represents a significant source of economic development for the country. The electricity distribution companies have undergone major transformations due to the transference of share control to private initiatives. The primary research technique used was a quantitative approach known as the descriptive and data envelopment analysis (DEA) based on data from 2012. It was identified that just 1 out of 17 Brazilian electricity distributors of the census is classified as efficient. It is worth noting that COSERN and RGE are the best benchmarks for inefficient firms and hold various awards for quality and industry management. Of all the variables evaluated, Power installed most affected efficiency scores. Among the variables that are necessary to improve were Global Performance Continuity and Average Response Time.

Keywords

• Technical efficiency
• Electricity Sector
• Power Distribution
• Data Envelopment Analysis