Benchmarking the efficiency of natural gas distribution utilities in Italy considering size, ownership, and maturity

In light of the reform of the Italian natural gas distribution introduced in 2007, this work performs a benchmarking and productivity analysis of distribution utilities, identifying the characteristics allowing greater efficiency. Using a Data Envelopment Analysis (DEA) and the Malmquist Productivity Index (MPI), we analyse the performances of utilities and compares them in terms of size, ownership (public or private), and maturity (pre or post-liberalization establishment). The results show that the more efficient utilities are mainly publicly owned and pre-liberalization established. Small and medium-sized utilities operate less efficiently than large ones, revealing the scale inefficiency of the sector.