A DEA analysis of electricity distribution in Spain: An industrial policy recommendation

We analyze, for the year 2011, a representative sample of 102 smaller distributors in Spain using DEA methodology. Our analysis introduces the change of perspective from the individual firm to the Regulatory body. The DMUs are the companies, but the information provided by the DEA models is oriented to reducing remuneration of inefficient units (maintaining quality), with corresponding savings for the overall system. The total reduction would rise close to 60 million Euros per year considering only the smaller companies.