Modelling Efficiency of Electric Utilities Using Three Stage Virtual Frontier Data Envelopment Analysis with Variable Selection by Loads Method

Electric utility regulators and policy makers implement incentive-based regulation to improve electric utilities efficiency or manage the cost of electricity. However, poorly implemented may produce undesired results such as low reliability poor quality service. Moreover, competition within electricity sector is likely be because high barriers entry, vertically integrated utilities, capital requirements. Therefore, benchmarking exercises allow gauge relative help them reward penalize accordingly. In this study, we examined variables that significantly influence developed an optimum method measure utilities. The measurement were then used rank result study indicates there are 13 affect score three stage virtual frontier data envelopment analysis (3S-VF-DEA)