An assessment of technical efficiency and cross-efficiency in Taiwan's electricity distribution sector

This paper compares technical efficiency and cross-efficiency scores in the electricity distribution sector in Taiwan through a data envelopment analysis framework. We calculate a cross-efficiency assessment to identify the overall efficient and ‘false standard’ efficient districts to which electricity is distributed and we can use them to cross-check with earlier technical efficiency scores. Using the false standard index, we can find that if one distributor has a higher magnitude, it can have greater benefits when we shift from peer reviewing to self-reviewing. The results will be of benefit to resource managers and administrators within these districts in their provision of useful guidelines for cost management in the competitive electricity market.