Determinants of the economic performance of Brazilian electricity distributors

Brandão, Roberto; Tolmasquim, Maurı́cio Tiomno; Maestrini, Marcelo; Tavares, Arthur Felipe; Castro, Nivalde José de; Ozorio, Luiz de Magalhães; Chaves, Ana Carolina

doi:10.1016/j.jup.2020.101142

Cited by 7 publications

(6 citation statements)

References 43 publications

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“…Digital transformation and its impacts are currently highly debated topics among academia with many researches focusing on the business performance [ 4 , 19 ], organizational changes [ 45 ], operational efficiency [ 15 ], productivity [ 16 ], cost performance [ 7 ] and innovation [ 14 , 59 ].…”

Section: Discussionmentioning

confidence: 99%

“…Second, previous research related to digital impact on utilities sectors focused on operational efficiency [ 15 ] and productivity [ 16 ], but other effects of digital transformation on utilities firms have not yet been touched. Third, scholars focused on examining other factors that may have association with business performance of utilities companies, such as environmental performance [ 17 ], corporate social responsibility [ 18 ], regulatory incentives and governance [ [19] , [20] , [21] ] as well as firms’ ownership structures [ 22 ], but digital transformation and its mechanisms that impact utilities performance remains unexplored.…”

Section: Introductionmentioning

confidence: 99%

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The impact of corporate digital transformation on firms’ performance in utilities sector

Wang,

Xia

2024

Heliyon

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Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

The impact of corporate digital transformation on firms’ performance in utilities sector

Wang,

Xia

2024

Heliyon

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“…Similarly, the Brazil Electric Authority Agency (ANEEL) enforced a regulation where Brazilian electric distribution companies are compelled to produce zero Economic Value Added (EVA). EVA means that the electric utilities' earnings shall be equal to their capital costs and ANEEL may reduce the electricity tariff if the electric utilities are generating higher than expected profit [19]. Although ANEEL may have good intentions to manage the cost of electricity, however such regulations will reduce the profitability of the electric utilities and will not attract new investors.…”

Section: Relationship Between Regulation and Efficiency Of Electric U...mentioning

confidence: 99%

Modelling Efficiency of Electric Utilities Using Three Stage Virtual Frontier Data Envelopment Analysis with Variable Selection by Loads Method

2021

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Electric utility regulators and policy makers implement incentive-based regulation to improve electric utilities efficiency or to manage the cost of electricity. However, poorly implemented regulation may produce undesired results such as low reliability or poor quality of service. Moreover, the competition within the electricity sector is likely to be low because of the high barriers to entry, vertically integrated electric utilities, and high capital requirements. Therefore, benchmarking exercises allow policy makers and regulators to gauge the relative efficiency of electric utilities and help them to reward or penalize the electric utilities accordingly. In this study, we examined the variables that significantly influence the efficiency of electric utilities and developed an optimum method to measure the efficiency of the electric utilities. The results of the efficiency measurement were then used to rank the electric utilities. The result of this study indicates that there are 13 variables that significantly affect the efficiency score of electric utilities and three stage virtual frontier data envelopment analysis (3S-VF-DEA) is the optimum method to measure the efficiency of the electric utilities.

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“…With a more economic bias, Brandão et al (2021) analyzed the performance of Brazilian distributors, clarifying why their earnings were, on average, below the limit allowed by the regulator. The main determinant identified was the adverse market effect, which was probably motivated by the economic crisis during the period evaluated.…”

Section: Introductionmentioning

confidence: 99%

Concentration in the electricity market: a return to the old paradigm?

Xavier,

Lopes,

Coimbra

2023

Rev. Car. Cien. Soc.

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The market structure of the electricity distribution segment is delineated through mergers and acquisitions. These movements are affected by the current regulatory model, which may favor a certain scale size over another. Although several papers analyze the Brazilian electricity distribution segment, Business Groups (BGs) are usually neglected in efficiency analysis. In this context, the paper evaluates the efficiency of the BGs that make up the Brazilian electricity distribution segment. To this end, three models - based on the Data Envelopment Analysis - were developed to evaluate global, technical, and scale efficiency. On average, the groups obtained the value of 0.60 for global efficiency, 0.76 for technical efficiency, and 0.80 for scale efficiency. Under the technical efficiency frontier, approximately 24% of operating costs could be reduced, translating into an average drop in the tariff of R$ 65 in the year 2017. This study contributes, in an empirical manner, to a greater understanding of the phenomenon of market concentration in natural monopolies.

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Determinants of the economic performance of Brazilian electricity distributors

Cited by 7 publications

References 43 publications

The impact of corporate digital transformation on firms’ performance in utilities sector

The impact of corporate digital transformation on firms’ performance in utilities sector

Modelling Efficiency of Electric Utilities Using Three Stage Virtual Frontier Data Envelopment Analysis with Variable Selection by Loads Method

Concentration in the electricity market: a return to the old paradigm?

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