Loss Per Consumer approach for efficiency analysis of Turkish Electricity Distribution Companies by Using DEA

Tamer Emre

Journal of Sustainable Development Issues (JOSDI), 2023, vol. 1, issue 1, 75-88

Abstract: The performance evaluation of electricity distribution companies has been extensively studied in the last two decades. These evaluations have been conducted in structures managed through a tariff system and have been approached from various perspectives. With liberalization, privatization, and increasing transparency in the markets, access to data, which is one of the major challenges in this field, has been improved. Energy losses have been a crucial factor in the performance evaluation of electricity distribution companies in Turkey. This article proposes using the Loss Per Consumer (LPC) index, rather than the conventional percentage representation, as a more effective tool for monitoring, evaluation, and setting targets. A data envelopment analysis (DEA) method was applied to the 2020 data of electricity distribution companies to perform an output-oriented efficiency assessment. The analysis makes use of energy losses, interruption time, interruption frequency, and loss rate (with both percentage and LPC options) as outputs and line length, transformer capacity, number of transformers and consumers, and energy invoiced as inputs. The results suggest that the LPC method offers better scalability for efficiency evaluations and the follow-up studies could further elucidate this issue by focusing on provinces and additional consumer groups.

Keywords: Energy losses; loss & theft; electricity distribution; DEA (search for similar items in EconPapers)
JEL-codes: C30 C38 Q40 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://journalsdi.com/index.php/jsdi/article/view/13/6 (application/pdf)
https://journalsdi.com/index.php/jsdi/article/view/13 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:arv:journl:v:1:y:2023:i:1:p:75-88

DOI: 10.62433/josdi.v1i1.13

Access Statistics for this article

Journal of Sustainable Development Issues (JOSDI) is currently edited by Shahriyar Mukhtarov

More articles in Journal of Sustainable Development Issues (JOSDI) from SDIjournals
Bibliographic data for series maintained by Shahriyar Mukhtarov ().