1 AIT Asian Institute of Technology

Power sector reforms in the Philippines : efficiency assessment of the electricity distribution sector

AuthorGuzman, Elaine R. de
Call NumberAIT Thesis no. ET-98-36
Subject(s)Electric power distribution--Philippines
NoteA thesis submitted in partial fulfilment 'of the requirements for the degree of Master of Science, School of Environment, Resources and Development
PublisherAsian Institute of Technology
AbstractFrom a traditional structure of integrated monopoly in electricity supply, the Philippine government is now moving towards a market-driven enviromnent in the electricity industry and a more efficient and reliable service to the consuming public. In the process, the govermnent may have to institute major sectoral adjustments such as the restructuring and privatization of the electricity industry prior to the completion of the desired industry structure. Under the present set-up, generation and transmission is largely undertaken by the National Power Corporation (NPC), a state-owned corporation, and few independent power producers (IPP) while the business of retail electricity distribution is left in the hands of the private sector and consumer-owned cooperatives. The distribution sector will be restructured with the end view of improving the efficiency of the sector. To complement the restructuring plans of the government, the electricity prices will be rationalized to reflect the true economic price of electricity and demand side management programs will be initiated to promote the efficient use of energy. The study evaluated the overall efficiency of the country's electricity distribution sector tlu·ough the use of a non-parametric approach also lrnown as data envelopment analysis (DEA). The DEA offers an alternative approach to the commonly used indicators such as engineering and financial ratios in measuring the overall performance of the distribution sector. This approach proved to be helpful in examining the deficiencies of the sector. Results show a relatively low level of overall efficiency in the sector mainly due to cost inefficiencies and technical inefficiencies arising from the use of inefficient technology, excessive usage of some inputs, and non-optimal scale of operation. The findings of the study were used to evaluate the different options available for the govenm1ent in restructuring the distribution sector. Considering the extent of overall inefficiencies in the distribution sector, the proposed industry restructuring would be an ideal approach to improve the efficiency of the sector.
Year1998
TypeThesis
SchoolSchool of Environment, Resources, and Development (SERD)
DepartmentDepartment of Energy and Climate Change (Former title: Department of Energy, Environment, and Climate Change (DEECC))
Academic Program/FoSEnergy Technology (ET)
Chairperson(s)Pacudan, Romeo B.
Examination Committee(s)Shrestha, Ram M. ;Lefevre, Thierry
Scholarship Donor(s)European Commission


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