EFFICIENCY AND DEREGULATION IN THE MALAYSIAN ELECTRICITY SECTOR

The Malaysian electricity sector was deregulated in the early 1990s as a response to the inadequate power supply and since then, has seen the inception of the independent power producers (IPPs). Through their supply of electricity to the national utilities, the nation’s power reserve margin has improved although many allegations from various reports have questioned the power purchase agreement terms arguing that the private producers were significantly gaining at the expense of the national utilities. Using DEA, we found that the national utilities have recorded a decline in their performance and efficiency in the wake of the post-IPPs era