How important is Efficiency in any Organization? “Estimating the Efficiency Reform of Power Distribution Companies in Punjab Province, Pakistan” (LESCO, FESCO & IESCO)
Keywords:
Calculating the Efficiency, Reform of Power Distribution CompaniesAbstract
In 1998, Pakistan took the step of reforming its electrical market including Punjab Province. In the same year, the WAPDA Act was established to maximize the whole well-being of the economy and adequately satisfy the country's growing energy requirements. The main goals of the reforms were to achieve operational, financial, and managerial efficiencies by reducing power prices, gross margins, system losses, and infrastructure spending. It was to be accomplished by raising private sector investment in electricity generation to utilize available generation capacity better and improve distribution utilities' efficiency. Additionally, the reforms aimed to enhance the distribution utilities' efficiency. These requirements are satisfied by the rapid development of the expansion of grids and the progression of technology. Currently, this study is focused on LESCO, FESCO, and IESCO distribution network input and output characteristics relative to their efficiencies and improving their economic and social impacts on Pakistan. The Data Envelopment Analysis is applied. Then, the results indicate that IESCO appears to be on an upward trend, FESCO likewise appears to be on an upward trend, and LESCO appears to be on a downward trend from the previous year into the future years.
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