Performance evaluation and benchmarking of Indian electricity distribution utilities using data envelopment analysis along with sensitivity analysis

N.K. Bishnoi and Pooja Gaur

International Journal of Engineering Management and Economics, 2018, vol. 6, issue 2/3, 138-165

Abstract: The present study aims to evaluate the relative efficiencies and benchmark of 55 electricity distribution utilities operating in different states in India by applying popular and effective performance evaluation method data envelopment analysis (DEA). Technical, pure technical and scale efficiencies were also computed along with peer to peer comparison of inefficient utilities with efficient ones. Efficiency evaluation results with performance improvement schemes also were provided. The results indicate performance efficiency scores, input and output slack, input and output variable targets, reference group for inefficient DMUs with weights and classification of DMUs on the basis on sensitivity analysis. Based on these results, inefficient utilities can improve their performance by making strategic plans for performance improvement. This paper is one of the few published studies that benchmark the performance of Indian electricity distribution utilities by taking specific parameters of electricity utilities of India. Also, it is one of the first paper in which sensitivity-based classification of Indian electricity distribution utilities is being performed to find out sensitivity of variables.

Keywords: data envelopment analysis; DEA; efficiency; sensitivity analysis; electricity distribution utilities. (search for similar items in EconPapers)
Date: 2018
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