Performance evaluation of electric distribution centers using Data Envelopment Analysis

This paper presents a performance evaluation of public and private electric distribution centers (DCs) of Nepal using Data Envelopment Analysis (DEA). Input oriented DEA models were used for various efficiency measurements. DEA models were solved using General Algebraic Modeling Systems. Results of the study showed that both managerial and scale inefficiencies were present in Nepalese electric DCs. Furthermore, it was found that privately owned DCs were managerially more efficient while they were less efficient in the scale of operation. On the other hand, publicly owned distribution centers are found to be the most efficient in their scale of operation while they are found to be technically less efficient compared to the private distribution centers. Classification based on the sensitivity analysis shows that around 59% of the DCs fall in the category of distinctly inefficient with base technical efficiency score of less than 90%.