Comparative electricity efficiency analysis in Italy: Microeconomic benchmarking of Italy's electricity distribution utilities

This book analyses the comparative efficiency of local electricity distributors in Italy using both econometric (deterministic and stochastic frontiers) and linear programming (Data Envelopment Analysis) techniques. Cross-sectional data are examined for ENEL, the former electricity monopolist, and for a sample of municipal authorities ("MUNIs"). Econometric estimation results highlight non-exhaustion of scale economies at sample mean values. The analysis fails to spot any systematic efficiency outperformance of ENEL's units vis-à-vis municipal distributors. ENEL's local units tend to outperform MUNIs in metropolitan and, sometimes, rural areas. MUNIs tend to outperform ENEL in medium-sized, Northern jurisdictions, probably as a result of different economic and structural regional realities.