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Benchmarking of Electricity Distribution Licensees Operating in Sri Lanka
Joint Authors
Hemapala, K. T. M. U.
Neelawala, Lilantha
Source
Issue
Vol. 2016, Issue 2016 (31 Dec. 2016), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2016-02-16
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
Electricity sector regulators are practicing benchmarking of distribution companies to regulate the allowed revenue.
Mainly this is carried out based on the relative efficiency scores produced by frontier benchmarking techniques.
Some of these techniques, for example, Corrected Ordinary Least Squares method and Stochastic Frontier Analysis, use econometric approach to estimate efficiency scores, while a method like Data Envelopment Analysis uses linear programming.
Those relative efficiency scores are later used to calculate the efficiency factor (X-factor) which is a component of the revenue control formula.
In electricity distribution industry in Sri Lanka, the allowed revenue for a particular distribution licensee is calculated according to the allowed revenue control formula as specified in the tariff methodology of Public Utilities Commission of Sri Lanka.
This control formula contains the X-factor as well, but its effect has not been considered yet; it just kept it zero, since there were no relative benchmarking studies carried out by the utility regulators to decide the actual value of X-factor.
This paper focuses on producing a suitable benchmarking methodology by studying prominent benchmarking techniques used in international regulatory regime and by analyzing the applicability of them to Sri Lankan context, where only five Distribution Licensees are operating at present.
American Psychological Association (APA)
Hemapala, K. T. M. U.& Neelawala, Lilantha. 2016. Benchmarking of Electricity Distribution Licensees Operating in Sri Lanka. Journal of Energy،Vol. 2016, no. 2016, pp.1-10.
https://search.emarefa.net/detail/BIM-1108503
Modern Language Association (MLA)
Hemapala, K. T. M. U.& Neelawala, Lilantha. Benchmarking of Electricity Distribution Licensees Operating in Sri Lanka. Journal of Energy No. 2016 (2016), pp.1-10.
https://search.emarefa.net/detail/BIM-1108503
American Medical Association (AMA)
Hemapala, K. T. M. U.& Neelawala, Lilantha. Benchmarking of Electricity Distribution Licensees Operating in Sri Lanka. Journal of Energy. 2016. Vol. 2016, no. 2016, pp.1-10.
https://search.emarefa.net/detail/BIM-1108503
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1108503