This paper compares technical efficiency and cross-efficiency scores in the electricity distribution sector in Taiwan through a data envelopment analysis framework. It is found that there are significant differences in efficiency between rural distributors and urban distributors, showing that the efficiency gains from urbanization may be substantial despite the fact that the population density is rather high in Taiwan. We also compare technical efficiency with cross-efficiency and identify the overall efficient and “false positive” efficient districts to which electricity is distributed. The results are crosschecked with earlier technical efficiency scores. In addition, we select a targeted candidate for each poor performer to use as a benchmark for efficiency improvement. We also design a management decision matrix to use as a benchmark for efficiency improvement for each poor performer.
All these investigations and their respective results are all of benefit to the resource managers and administrators of these districts in that they provide useful guidelines for cost management in the competitive electricity market.
