Evaluation of Energy Distribution Using Network Data Envelopment Analysis and Kohonen Self Organizing Maps

Abstract

This article presents an alternative way of evaluating the efficiency of the electric distribution companies in Brazil. This assessment is currently performed and designed by the National Electric Energy Agency (ANEEL), a Brazilian regulatory agency, to regulate energy prices. This involves calculating the X-factor, which represents the efficiency evolution in the price-cap regulation model. The proposed model aims to use a network Data Envelopment Analysis (DEA) model with the network dimension as an intermediate variable and to use Kohonen Self-Organizing Maps (SOM) to correct the difficulties presented by environmental variables. In order to find which environmental variables influence the efficiency, factor analysis was used to reduce the dimensionality of the model. The analysis still uses multiple regression with the previous efficiency as the dependent variable and the four factors extracted from factor analysis as independent variables. The SOM generated four clusters based on the environment and the efficiency for each distributor in each group. This allows for a better evaluation of the correction in the X-factor, since it can be conducted inside each cluster with a maintained margin for comparison. It is expected that the use of this model will reduce the margin of questioning by distributors about the evaluation.

Keywords

• data envelopment analysis
• Kohonen self-organizing maps
• factor analysis
• multiple regression
• energy efficiency