A DEA study to evaluate the relative efficiency and investigate the district reorganization of the Taiwan Power Company

In this study data envelopment analysis (DEA) models were applied to evalua te the relative efficiencies of twenty-two electricity distribution distric ts of the Taiwan Power Company (TPC) in Taiwan, ROC, The empirical study sh owed that the TPC districts have good overall efficiency. We found that ele ven districts were inefficient, Most of the inefficient districts suffer fr om scale inefficiency to a greater degree than technical inefficiency. We s uggested the specific improvement directions for the corresponding ineffici ent districts. This study also investigated district reorganization to incr ease the efficiency. The proposed district reorganization alternatives have higher efficiency scores than the current one.