Determinants of the economic performance of Brazilian electricity distributors

Roberto Brandão, Maurício T. Tolmasquim, Marcelo Maestrini, Arthur Felipe Tavares, Nivalde J. Castro, Luiz Ozorio and Ana Carolina Chaves

Utilities Policy, 2021, vol. 68, issue C

Abstract: This research aims to quantify the determinants of Brazilian Distribution System Operators (DSOs) economic performance. In this sense, seven cost and performance drivers of a DSO economic performance were defined. The contribution of each one to the actual DSO profit was measured by using Brazilian regulatory agency financial and operating data from 2009 to 2016. The analysis helps explain why Brazilian DSOs earnings have been, on average, lower than regulator-authorized earnings defined in the tariff review process over the last years, and the main determinant of it was the adverse effect on the market (2009 and 2014 to 2016), which was probably due to the economic crisis. Additionally, we have shown that part of the finance distress comes from electricity losses no recovery in tariff and we confirm that province-owned are prone to be less efficient than private utilities.

Keywords: Regulation; Electricity distribution; Economics performance (search for similar items in EconPapers)
JEL-codes: H42 K23 L33 Q48 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:juipol:v:68:y:2021:i:c:s0957178720301351

DOI: 10.1016/j.jup.2020.101142

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