ISSN 0718-3291 Printed version

ISSN 0718-3305 Online version

Volume 16 N° 2, July - September 2008

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Definition of efficient references for regulatory benchmarking of distribution companies

 

Raúl Sanhueza H.                     Horacio Díaz R.              Ildefonso Harnisch V.

 

1 Escuela Universitaria de Ingeniería Eléctrica – Electrónica. Universidad de Tarapacá. Casilla 6-D. Arica, Chile. E-mail: sanhueza@uta.cl

2 Escuela Universitaria de Ingeniería Eléctrica – Electrónica. Universidad de Tarapacá. Casilla 6-D. Arica, Chile. E-mail: hdiaz@uta.cl

3 Escuela Universitaria de Ingeniería Eléctrica – Electrónica. Universidad de Tarapacá. Casilla 6-D. Arica, Chile. E-mail: harnisch@uta.cl 


 

RESUMEN

Se formula un procedimiento basados en el análisis envolvente de datos y la metodología p-mediana para determinar una empresa de referencia eficiente para el proceso de regulación de las empresas de distribución eléctricas. Se determinan las áreas de distribución típicas para establecer las tarifas de distribución en un proceso cuyo núcleo regulador está basado en el concepto de empresa eficiente. Se aplica dentro del marco del último proceso regulador chileno.

Palabras clave: Sistemas de distribución, regulación por comparación, empresa eficiente, análisis envolvente de datos,  p-median.

 

ABSTRACT 

The data envelopment analysis and the p-median methodology are formulated as tools to determine efficient references for regulatory benchmarking of electrical distribution companies. Distribution typical areas are determined for the purpose of establishing distribution tariffs in a process whose regulatory core is based on the efficient company concept. Its application within the framework of the last Chilean regulatory process is illustrated.

Keywords: Distribution systems, benchmark regulation, efficient company, data envelopment analysis, p-median.


 

ACKNOWLEDGEMENTS

The authors acknowledge the support from Universidad de Tarapacá, Project 8723-06.


 

REFERENCES

[1]  A. Charnes, W.W. Cooper and E. Rhodes. "Measuring the efficiency of decision making units". European Journal of Operational Research. Vol. 2, pp. 429-444. 1978. 

[2]  R.D. Banker, A. Charnes and W.W. Cooper. "Some Models for Estimating Technical and Scale Inefficiencies in Data Envelopment Analysis". Management Science. Vol. 30 Nº 9, pp.  1078-1092, 1984. 

[3]  S.A.C. Kittelsen and R.F. Førsund. "Efficiency Analysis of Norwegian District Courts". Journal of Productivity Analysis. Vol. 3, pp. 277-306, 1992. 

[4]  H. Tulkens. "On FDH Efficiency Analysis: Some Methodological Issues and Application to Retail Banking, Courts and Urban Transit". Journal of Productivity Analysis. Vol. 4, pp. 183-210. 1993. 

[5]  T.C. Koopmans. "An analysis of production as an efficient combination of activities". In: KOOPMANS, T.C. Activity analysis of production and allocation, Cowles Commission for Research in Economics, Monograph. N° 13. NY, JWS. 1951. 

[6]  R. Bitu and P. Born. "Tarifas de Energía Eléctrica: Aspectos Conceptuales y Metodológicos". Olade. 1993. 

[7]  H. Rudnick and R. Raineri. "Chilean distribution tariffs: incentive regulation". Chapter in (De) Regulation and Competition: The Electric Industry in Chile. Ilades-Georgetown University, pp. 223-257. 1997. 

[8]  H. Rudnick and J. Donoso. "Integration of price cap and yardstick competition schemes in electrical distribution regulation". IEEE Transactions on Power Systems. Vol. 16 Nº 4, pp. 939-945. November 2001. 

[9]  T. Jamasb and M. Pollitt. "Benchmarking and Regulation of Electricity Distribution and Transmission Utilities: Lessons from International Experience". DAE Working Paper, Department of Applied Economics. University of Cambridge. 2001. 

[10] IPART. "Efficiency and Benchmarking Study of the NSW Distribution Businesses". Commissioned by the Independent Pricing and Regulatory Tribunal of New South Wales, Prepared by London Economics. Sydney. 1999. 

[11] M. Daskin. "Network and Discrete Location: Models, Algorithms and Applications". Wiley Interscience Series in Discrete Mathematics and Optimization. Toronto. 1995.

 

 


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