Honkapuro, Samuli; Lassila, Jukka; Partanen, Jarmo
In this paper, the directing effects of the efficiency targets included in the economical regulation of the electricity distribution companies are analysed. That includes the analyses of the efficiency benchmarking methodology, as well as the role of the capital costs and power quality in the efficiency measurement process.
The aim of these analyses is to find the developing needs of the efficiency measurement process. Based on the analyses, the most challenging task turned out to be the defining of the role of the investments in the efficiency benchmarking. Beside of the analyses of the general efficiency benchmarking process, detailed examples are given concerning the development of the efficiency measurement process in Finland, where the efficiency benchmarking method called Data Envelopment Analysis (DEA) is implemented in the rate-of-return regulation.
