`a`
Journal of Industrial and Management Optimization (JIMO)
 

Efficiency analysis in electricity transmission utilities

Pages: 253 - 274, Volume 5, Issue 2, May 2009      doi:10.3934/jimo.2009.5.253

 
       Abstract        Full Text (243.9K)       Related Articles

Angela Cadena - Department of Electrical and Electronic Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Adriana Marcucci - Department of Electrical and Electronic Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Juan F. Pérez - Department of Industrial Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Hernando Durán - Department of Electrical and Electronic Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Hernando Mutis - Department of Industrial Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Camilo Taútiva - Department of Electrical and Electronic Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)
Fernando Palacios - Department of Industrial Engineering, Universidad de los Andes, Carrera 1 N 18A 10, Bogotá, Colombia (email)

Abstract: In those countries where the electric production chain has been disintegrated, transportation utilities (transmission as well as distribution) are subject to regulation or are under supervised activity. Regulation of activities considered as natural monopolies in network economies requires knowing or assessing efficient capital and operating expenditures (CAPEX and OPEX) depending on the output levels. The problem of determining the tariffs that transmission utilities can charge is tightly related to efficient OPEX levels. This work discusses the use of Data Envelopment Analysis and Stochastic Frontier Analysis to determine efficient frontiers for the electricity transmission activity. The results include relative efficiency and productivity indexes, as well as benchmarking peers. This information can be useful to the regulator to foster efficient performance of transmission utilities.

Keywords:  Efficiency measurement, Data Envelopment Analysis, Stochastic Frontier Analysis, electricity transmission, operating expenditures.
Mathematics Subject Classification:  Primary: 90B90, 62P30.

Received: June 2007;      Revised: February 2009;      Available Online: April 2009.