Combination of Parametric and Non-parametric Models to Rank the Electricity Distribution Companies

In this paper, a comprehensive approach for performance assessment and ranking of the electricity distribution companies is presented. In this approach, in order to obtain exact ranks of the electricity distribution companies, Data Envelopment Analysis (DEA) as a non-parametric model and Corrected Ordinary Least Squares (COLS) as a parametric model are combined by Principal Component Analysis (PCA). First, the efficiency scores of the electricity distribution companies are calculated by DEA and COLS. Then, the efficiency generated by DEA and COLS are used as indicator in PCA model. In this paper, thirty eight electricity distribution companies are ranked by proposed approach and the results are validated and verified by geometric mean approach.