Assessing the efficiency of iranian electric distribution companies using nonparametric approach

During recent years, Iranian authorities have tried to make competitive condition and to grant distribution companies to private sectors. In this paper, a new algorithm for assessment of the efficiency of Iranian electric companies using data envelopment analysis (DEA) with k-means clustering and principle component analysis (PCA) is presented. K-means algorithm is applied for finding similar distribution companies and clustering similar companies into different groups also PCA is used to reduce the number of input and output variables under study. The results of benchmarking are DEA efficiency score (overall, technical and scale efficiency), slacks in inputs and outputs of inefficient companies.