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Assessing the efficiency dynamics of post reforms electric distribution utilities in Pakistan

Faisal Mehmood Mirza, Iqra Mushtaq and Kafait Ullah

Utilities Policy, 2017, vol. 47, issue C, 18-28

Abstract: The power sector of Pakistan has undergone major reforms since 1994 with the objectives of increasing technical and financial performance of the sector. This study estimates and analyzes post reforms efficiency dynamics of electric distribution utilities from 2006 to 2013. Fixed effects stochastic frontier analysis results indicate that technical efficiency of utilities increased by 4.8 percent. However, total factor productivity experienced a negative growth of 11 percent as all components of index remained negative except for efficiency change. Productivity of electric distribution utilities can be enhanced by adjusting their scales of operation and reducing their size through further horizontal separation.

Keywords: Market reforms; Efficiency dynamics; Stochastic frontier analysis; Distribution utilities; Panel data; Pakistan (search for similar items in EconPapers)
JEL-codes: D24 L95 L94 (search for similar items in EconPapers)
Date: 2017
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Handle: RePEc:eee:juipol:v:47:y:2017:i:c:p:18-28