Impact of energy efficiency policy to productive efficiency of electricity distribution industry in the Philippines

The study analyzes the productive efficiency and simulates the effect of the energy efficiency policy on the productive efficiency of the electricity distribution industry in the Philippines, using data envelopment analysis (DEA). The study finds that the main source of technical inefficiency in the distribution utilities is scale inefficiency. Moreover, the study finds that with DSM electricity savings targets, the technical efficiency of the industry would slightly improve. Significant improvement of technical efficiency is furthermore found with system loss reduction targets. The paper concludes that the energy efficiency policy which benefits the overall economy and whole electricity supply industry results also in productive efficiency improvement in the distribution sector of the industry. (C) 2002 Elsevier Science B.V. All rights reserved.