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

Authors: N.K. Bishnoi; Pooja Gaur

Addresses: Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, 125001, India ' Haryana School of Business, Guru Jambheshwar University of Science and Technology, Hisar, 125001, India

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.

DOI: 10.1504/IJEME.2018.095678

International Journal of Engineering Management and Economics, 2018 Vol.6 No.2/3, pp.138 - 165

Received: 19 Aug 2017
Accepted: 25 Mar 2018
Published online: 16 Oct 2018 *

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