Efficiency analysis of electricity distributors in the state of São Paulo: a Data Envelopment Analysis (DEA) approach

• Grant number: 24/19550-5
• Support Opportunities: Scholarships in Brazil - Scientific Initiation
• Start date: May 01, 2025
• End date: April 30, 2026
• Field of knowledge: Applied Social Sciences - Economics - Quantitative Methods Applied to Economics
• Principal Investigator: Ana Elisa Périco
• Grantee: Naymi Roncolato
• Host Institution: Faculdade de Ciências e Letras (FCL). Universidade Estadual Paulista (UNESP). Campus de Araraquara. Araraquara , SP, Brazil

Abstract

The electric power sector in Brazil is fundamental to economic and social development, representing a portion of the GDP and acting as an essential input for all productive sectors in the modern period of industrialization. Since the privatization and reorganization of the sector in the 1990s, distributors have faced challenges in balancing efficiency, quality, and financial sustainability in an environment regulated by the National Electric Energy Agency (ANEEL). Under the Price Cap model, which imposes a tariff ceiling, concessionaires must constantly seek improvements in management and cost reduction to ensure profitability and meet ANEEL's regulatory requirements. In this context, this study focuses on seven distributors in the state of São Paulo, covering the period from 2014 to 2023, in which it aims to analyze the efficiency of these companies using the Data Envelopment Analysis (DEA) methodology. To this end, the method is applied in three distinct models: the first analyzes economic efficiency, the second focuses on the productivity of concessionaires in relation to energy distribution and quality of services, and the third assesses the capacity to generate economic and social results. This project is of great relevance, as it provides important analyses on efficiency practices and allows a detailed assessment of the performance of distributors in the current context, marked by the modernization of infrastructure and the growing demand for sustainability in the sector.