The Evaluation of the Efficacy of an Ongoing Reform Initiative of an Indian Electric Utility.

This article evaluates the performance of electricity distribution divisions (EDDs) of an Indian state utility namely, Uttarakhand Power Corporation Limited (UPCL) in terms of overall efficiency through data envelopment analysis with an objective to trace the effectiveness of an ongoing restructuring process. Relative efficiencies of the divisions are compared for the period 2005 to 2008. Further using the Malmquist productivity index and its decompositions, productivity change is investigated for EDDs during the same period. This study gives an assessment of UPCL to monitor and diagnose the changes in the productivity of EDDs, so it will help regulators to formulate more effective policies on deregulation and disintegration and to determine the appropriate productivity factor when imposing yardstick competition on electric utilities. [ABSTRACT FROM PUBLISHER]