Assessing the Performance and Finding the Benchmarks of the Electricity Distribution Districts of Taiwan Power Company

Abstract

This paper proposes an alternative data envelopment analysis method to explore the efficiency, the resource allocation, and the benchmarks of the electricity distribution districts (EDDs) of Taiwan Power Company in 2003. Several empirical results are shown: 1) the EDDs covering the high-tech industry park are more efficient, on average, than ones involved in the nonhigh-tech industry park; 2) the EDDs located in urban areas outperform those located in rural areas; 3) the large-sized EDDs generally are more able to integrate their resources and to operate efficiently; 4) the benchmark-share measure shows that while small-size efficient EDDs can easily become benchmarks, large-size efficient EDDs are deemed as competitive niche players; and finally, 5) the effect on these EDDs merging their activities should be investigated to explore the possibility of increasing competitive advantage in the future.