Engineering Technology Open Access Journal

Total Costs in The Brazilian Efficiency Model of Distribution System Operators: An Analysis

Author: Sandra de Sousa Xavier*, Robinson Semolini, José Francisco Moreira Pessanha

Published: August 07, 2020

DOI:

Abstract Content: This study analyses the efficiency of electricity distributors in Brazil by considering total costs. The impact of the inclusion of total costs is evaluated with four different efficiency models using Data Envelopment Analysis and Stochastic Frontier Analysis. The analyses are conducted using a sample of 60 companies over two periods of time. The years 2008 to 2010 are used to calculate the efficiency frontier, and the years 2011 to 2012 are used to validate the methodology. The results show that, on average, the total costs estimated by benchmarking methods are approximately 7% lower than those observed in 2011 and 2012, that is, utilities need to reduce their total annual costs by approximately R$40 million on average.