The technical efficiency of developing country electricity systems

Abstract

The objective of this paper is to identify best practice performance and to measure the technical efficiency of 85 developing country electricity systems. Technical efficiency is measured as the ratio of the gross output of electricity sectors to their output at best practice. Technical efficiency estimates are standardised for differences between systems in average consumption of electricity per customer, inefficiencies due to nonoptimal scale and input congestion. The resulting estimates of technical efficiency measure the scope for management initiated improvements in labour and capital productivity by forming benchmarking partnerships and emulating the best practices of other systems.