Efficiency and Ownership in Swedish Electricity Retail Distribution

Abstract

This article examines the efficiency of electricity retail distributors in Sweden in a multiple output multiple input framework. Productive efficiency measures are calculated by use of different versions of the non-parametric Data Envelopment Analysis (DEA) method. Comparisons are made between different types of ownership and between different types of service areas.The study indicates a rather low level of technical efficiency, a high level of scale efficiency in urban service areas, but a fairly low level of scale efficiency in rural areas. The results show no significant differences in efficiency between different types of ownership or economic organization.