EURO 2025 Leeds
Abstract Submission

2570. ANALYSIS OF ENVIRONMENTAL VARIABLES IN THE REGULATORY CONTEXT OF THE OPERATIONAL COSTS OF BRAZILIAN ELECTRICITY DISTRIBUTORS, BASED ON THE 3CPTR

Invited abstract in session TD-60: DEA applications in Environment and Sustainability I, stream Data Envelopment Analysis and its applications.

Tuesday, 14:30-16:00
Room: Western LT

Authors (first author is the speaker)

1. Bruno Vilela
Institut für Controlling & Unternehmensrechnung, Technische Universität Braunschweig
2. Tatielle Menolli Longhini
Postgraduate Program in Production Engineering, Federal University of Minas Gerais
3. Marcelo Azevedo Costa
Federal University of Minas Gerais

Abstract

From the third cycle of periodic tariff reviews (3CPTR) onward, the National Electric Energy Agency (NEEA) adopted the Data Envelopment Analysis (DEA) methodology to define the operating costs of electricity distribution companies, segmenting them into manageable and non-manageable items through benchmarking. Despite the consensus that environmental factors influence costs and operational efficiency, the regulatory model does not explicitly consider them. This study analyzes the Technical Notes from Public Hearings 040/2010 and 023/2014, as well as Public Consultation 062/2020, showing that second-stage models incorporating environmental variables exhibit low statistical significance and, in some cases, counterintuitive or overestimated results. The lack of methodological consensus highlights the need for further research on the impact of these variables on distribution companies' efficiency. In the absence of robust evidence, NEEA continues to use confidence intervals to mitigate uncertainties in efficiency estimates.

Keywords

Status: accepted

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