Cost Benchmarking of Generation Utilities Using DEA A Case Study of India英文文献资料.docVIP

Technology and Investment, 2010, 1, 229-234 doi:10.4236/ti.2010.14028 Published Online November 2010 (http://www.SciRP.org/journal/ti) Cost Benchmarking of Generation Utilities Using DEA: A Case Study of India Shafali Jain, Tripta Thakur, Arun Shandilya Department of Electrical Engineering, National Institute of Technology, MANIT-Bhopal, India E-mail: {shafalijain9, tripta_thakur}@yahoo.co.in, arunshandilya@ Received July 28, 2010; revised September 8, 2010; accepted September 12, 2010 Abstract Technical efficiency of electric utility is the critical element for its competitiveness in the electricity market and very relevant in the Indian electricity sector presently. This paper is aimed to measure the efficiencies of 30 state owned electric generation utilities/companies for the year 2007-08 by applying DEA models with single input and two outputs. The input used is total cost and outputs are units of energy generated and total energy sold or consumed. Cost benchmarking has been carried out so that cost controls can be implemented. In addition, the target evaluation for input cost has also been done. The result of this model shows that GENCOs are generally inefficient in cost frontier and there is an urgent need for intro inspection. This will help for GENCOs. The result shows that the total average of overall, technical and scale efficiencies are 46%, 75.1% and 60% respectively. This efficiency measurement assists the utilities by identifying their shortcom- ings, setting targets and trying to reach the set targets. Keywords: Data Envelopment Analysis (DEA), Generation Company (GENCO), Cost Benchmarking, Target Evaluation 1. Introduction the last two decades can be attributed to two main rea- sons. One reason is the huge growth in demand for elec- tricity, mostly from industries and agriculture. The other reason is the unbelievable level of inefficiencies at all stages between electricity generation and its end