A DEA Study to Evaluate the Relative Efficiency of Power Reliability on Distribution system of the Taiwan Power Company

[[abstract]]Taiwan Power Company (Taipower) is in the process of upgrading its quality of service and actively improve the power reliability to reduce electrical outage. Since 2002, In order to achieve its goal, Taipower establishes System Average Interruption Duration Index (SAIDI), and System Average Interruption Frequency Index (SAIFI), that eventually pursued by all branches each year. The purpose of this study is to evaluate Taipower?s position when compared with some foreign utility companies in the neighboring countries such as Japan and South Korea. In addition, this study also evaluate the distribution performance of Taipower?s 21 district branches using the Data Envelopment Analysis (DEA) by examining the overall efficiency, scale efficiency and technological efficiency of power supply distribution system between year 2001 and 2003. The result of this study has showed that the higher the density of population, the less efficient in distribution of power supply. On the other hand, the satellite suburban or agriculture village is relatively efficient. As Taiwan's electricity market is facing more liberalization and privatization, Taipower must improve its performance in order to stay competitive