Performance assessment of Turkish electricity distribution utilities: An application of combined FAHP/TOPSIS/DEA methodology to incorporate quality of service

The recent years have witnessed the increase in the importance of service quality in the performance measurement of the regulated utilities. In this study, to incorporate quality of service in performance measurement, we propose a combined methodology of FAHP/TOPSIS/DEA methods, and apply it to the Turkish electricity distribution market. With FAHP method, the relative importance levels of different quality indicators are determined. Then TOPSIS method is used to generate quality of service variable. And finally this variable is used as an output in the DEA stage, and efficiency performances of the electricity distribution utilities are determined. The most important advantage of the combined methodology is that it allows taking into account several quality measures simultaneously instead of relying on only one dimension of the quality.

► We propose a combined methodology of FAHP/TOPSIS/DEA to incorporate quality of service in performance measurement.
► FAHP determines the relative importance levels of different quality indicators.
► TOPSIS generates the quality of service variable.
► DEA measures efficiency performances of the electricity distribution utilities.
► The combined methodology allows taking into account several quality measures simultaneously.