Research on the regulation of power transmission and distribution based on DEA

Theory of data envelopment analysis (DEA) was applied in the regulation of power transmission and distribution (T&D) in this paper. Firstly, relevant variables of T&D companies with similar production and operation status in China were classified and modeled. Then, references on regulation targets were provided for regulators through evaluating parameters of these companies in the DEA model, such as the relative comprehensive efficiency (RCE), which was the optimization result of DEA linear programming. Lastly, on the basis of further investigation in the input-output variablespsila shadow prices and these variablespsila corresponding allowable floating scope got by lindo softwarepsilas sensitivity analysis, regulation on costs, T&D charges and relevant technology and economy variables were further specified. It is proved that investigations in the key variables of power T&D companies are significant in guiding effective and practical regulations in Power T&D area.