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Ingeniare. Revista chilena de ingeniería

On-line version ISSN 0718-3305

Abstract

SANHUEZA HORMAZABAL, Raúl  and  RUDNICK VAN DE WYNGARD, Hugh. FRONTIER METHODOLOGIES FOR THE DETERMINATION OF EFFICIENCIES IN DISTRIBUTION COSTS. Ingeniare. Rev. chil. ing. [online]. 2007, vol.15, n.3, pp.220-226. ISSN 0718-3305.  http://dx.doi.org/10.4067/S0718-33052007000300002.

The efficiency of electric distribution companies is assessed under a productive efficiency criterion viewpoint. The analysis methodology consists of the estimation of frontier production costs functions; a parametric and a non parametric function. Two individual technical efficiency measurements for the distribution business are obtained from these functions. The assessment confirms actions and strategies that result in cost reductions in distribution companies. An application within the framework of the last Chilean regulatory process is illustrated in this work.

Keywords : Distribution companies; distribution regulation; benchmark regulation; data envelopment analysis; efficiency frontiers; stochastic frontiers.

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