Regulation of electricity distribution

25 november 2008, from 10.30 am to 12 pm

GIS LARSEN, campus of Fontenay aux Roses

Speaker : Marie-Anne Plagnet (EDF Recherche and Développement)


Summary : In this paper we use annual data on 92 French electricity distribution units (2003-2005) to estimate a benchmarking model that includes a quality of service indicator (number of interruptions). Our methodology involves the estimation of input distance functions using stochastic frontier analysis (SFA) and data envelopment analysis (DEA) techniques. The empirical results indicate that the inclusion of the quality variable has no significant effect upon mean technical efficiency scores, and the mean shadow price of one interruption is approximately ten euros.

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