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This article reviews an index number framework that links changes in aggregate performance measures (such as profit, revenue, cost and total factor productivity) to changes in both the prices and quantities of key outputs and inputs. The framework provides a way of linking the aggregate performance measures to outcomes for individual customer groups, employees and owners of businesses. This information is useful to policy makers in evaluating the outcomes of economic reform, including the distributional consequences. It is also useful to regulators who need to understand and monitor both the consequences of their regulation and the response to their decisions by those being regulated. The article demonstrates that the logarithmic version of Fisher's Ideal index offers a useful way of integrating changes in profit, productivity and prices into a single analysis. The usefulness of the framework is illustrated by applying it to a data set for Australian National.

Total Factor Productivity in Australia's state-owned power generation firms was examined based on a model which takes into account variables relating to the operating environment. Results revealed that operating environments play a significant role in the productivity and overall performance of state electric utilities. In terms of efficiency and management initiatives, the study established a widening gap between Australia's leading electricity system, the Queensland Electricity Supply Industry and the New South Wales Electricity Supply Industry.

Research is presented concerning the development of a mathematical programming model which can be used to simulate a hypothetical electricity market and act as an aid in industry regulation and the setting of prices.