Explaining the inefficiency of electrical distribution companies: Peruvian firms

Raúl Pérez-Reyes, Beatriz Tovar

Research output: Contribution to journalArticle (Contribution to Journal)peer-review

5 Scopus citations


This paper investigates the extent to which the structural reform of the Peruvian electricity market, implemented in the 1990s, has improved the efficiency of the distribution companies; and it evaluates the influence on efficiency of firm specific explanatory variables. To do this, we rely on data from 14 distribution companies between 1996 and 2006. The results indicate that the incentives generated by the reform process led to the firms becoming more efficient. Moreover, the time trend and private management of the distribution companies are variables that positively affect the levels of efficiency, whereas the lower network densities are then the greater the inefficiency.

Translated title of the contributionExplicando la ineficiencia de las empresas de distribución eléctrica: Firmas peruanas
Original languageEnglish
Pages (from-to)1175-1181
Number of pages7
JournalEnergy Economics
Issue number5
StatePublished - Sep 2010
Externally publishedYes


  • Efficiency drivers
  • Electricity distribution
  • Market reform
  • Parametric distance function


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