Measurement of Relative Efficiencies of Iran's Electricity Distribution Companies: Data Envelopment Analysis with Double Frontier

Several research evaluated the efficiency of electricity distribution companies by custom Data Envelopment Analysis (DEA) method, but recent researches have shown that by only reliance to the custom or optimistic DEA, we can’t certainly rank the companies according to their efficiencies, so they use pessimistic efficiency concept and integrate these two efficiencies in a mathematical function format to rank companies with high certainty and without needing to intricate calculations. In this research we want to calculate the relative efficiency by Double Frontier DEA that is more precise than the custom method. The results show that Mashhad’s electricity distribution company among the 39 studied companies has the first grade, while by using custom DEA method, ten other companies stand on the efficiency frontier.