Estimation of the efficiency of utility companies in Colombia

Abstract

The administration of the domiciliary public utility companies must ensure compliance with their demand, ensuring the available financial resources cover the costs and achieve dividends for owners.This paper proposes a methodology for mea-sure the efficiency of domestic utility companies in Colombia through a stochastic frontier, considering information from 2014 to 2018 from 44 companies, showing an efficiency ranking of firms, the result shows company’s resource efficiency rate is 39%.