Efficiency analysis in electricity transmission utilities Academic Article


  • Journal of Industrial and Management Optimization


  • 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.

publication date

  • 2009-7-6


  • 5


  • Benchmarking
  • Capital Expenditures
  • Chain
  • Charge
  • Data Envelopment Analysis
  • Data envelopment analysis
  • Efficiency Analysis
  • Efficiency Index
  • Efficient Frontier
  • Electricity
  • Electricity Transmission
  • Expenditure
  • Natural Monopoly
  • Network Economy
  • Output
  • Peers
  • Performance
  • Productivity
  • Productivity Index
  • Regulator
  • Relative Efficiency
  • Stochastic Frontier
  • Stochastic Frontier Analysis
  • Tariffs

International Standard Serial Number (ISSN)

  • 1547-5816

number of pages

  • 22

start page

  • 253

end page

  • 274