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Efficiency in the energy sectorIn 2008, benchmarking was only carried out for the electricity sector.in the electricity sector show: There are marked differences between the efficiency of all types ofgrid company in the electricity sector. The differences in efficiencyare significantly higher than would normally be seen in competitivemarkets. DERA’s analyses in “Results and Challenges 2007” showed that thisalso applied for the natural gas sector and the district heating sector. For 2008 DERA imposed efficiency requirements on the electricitygrid companies of almost DKK 80 million. This corresponds to areduction in the revenue caps of about 1.2 per cent, and it is moredemanding than 2007, when the total revenue cap requirementwas about DKK 45 million, corresponding to 0.7 per cent of thecompanies’ total revenue caps. Comparisons between the efficiency of the Danish electricity gridcompanies and the Swedish, Norwegian and Dutch confirm thatthere are further potentials for efficiency improvements amongstthe least efficient Danish electricity grid companies. Mergers can improve the efficiency of the electricity grid companies.The preliminary results of an analysis of the significance of mergersin the sector suggest that mergers have resulted in lower operatingcosts, especially with regard to customer administration.Danish Energy Regulatory Authority · 200813

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