Organizational Efficiency in Electric Mexican Enterprise: Luz y Fuerza del Centro (LyFC) as Reason for Extinction

Luis Arturo  Rivas Tovar; Benito Vargas  Álvarez; Adela  Chavez

doi:10.4236/ib.2013.54018

Luis Arturo Rivas Tovar^*, Benito Vargas Álvarez, Adela Chavez

Abstract: This paper analyzed the internal and external factors that determined the efficiency of LyFC before its extinction, allowing for a comparative assessment of perceptions in which former electrical workers argued the unconstitutionality of this action, and the Federal Government justified under the low efficiency argument that was reflected in the decrease of indicator User Interruption Time (TIU), an indicator in which the Federal Government determines the efficiency of the Agency. The study is correlational, descriptive, transversal and applies a measuring instrument with 93 items to a population of 267. For the analysis of results, we used SPSS and descriptive statistics and inferential. The results allowed us to point out that the budget allocation variables, technology, work organization, material assignment, administrative efficiency, distribution networks, housing growth and external factors mentioned in this research itself directly influenced the efficiency of the Light and Power Center (LyFC) and explanatory variables were terminated. Moreover, the comparison of operating performance and workloads receiving utilities shows that although the Mexican Federal Electricity Commission (CFE) is a very inefficient, labor costs and benefits were higher in LyFC and were certainly a reason, its extinction.

Keywords: Electrical Industry; Efficiency; Utilities; Light and Power of the Center; CFE; Mexico

Cite this paper: L. Rivas Tovar, B. Álvarez and A. Chavez, "Organizational Efficiency in Electric Mexican Enterprise: Luz y Fuerza del Centro (LyFC) as Reason for Extinction," iBusiness, Vol. 5 No. 4, 2013, pp. 147-153. doi: 10.4236/ib.2013.54018.

References

[1] R. Ochoa, “Challenge Energy Electricity Sector for the Medium Term of Mexico,” Mexican Association for Energy Economics, Mexico, 2000.

[2] M. Thomas, “The Flow of Electricity in Mexico,” In: L. Aragon Campos, Ed., The British Model in Mexican Electricity Industry, Twenty First Century Publishers, Mexico, 2003.

[3] O. Hernández, “Electricity Reform: The Forgotten Labor Dimension, Center for Development Research (CIDAC),” Mexico, 2004.

[4] A. Gabriel, “Mathematical Methodology for Predicting Failure Events in Companies Engaged in Power Generation,” Energy Policy, Vol. 29, No. 2, 2008, pp. 1-8.

[5] Official Journal of the Federation, “Decree That the Body Dies Decentralized Luz y Fuerza del Centro,” 2009, p. 3.

[6] S. Thomas, “The Privatization Process,” In: L. Aragon Campos, Ed., The British Model Electric Industry Mexicana, Twenty First Century Publishers, Mexico, 2003.

[7] R. Grosman, “The Electricity Sector in Europe, Economists,” Spain, Vol. 5, No. 43, 1990, pp. 11-27.

[8] M. Simab and M. Haghifam, “Using Integrated Model to Assess the Efficiency of Electric Distribution Companies,” IEEE Transactions on Power Systems, Vol. 25, No. 4, 2010, pp. 1806-1814.

[9] K. Tone and M. Tsutsui, “Descomposition of Cost Efficiency and Its Application to Japanese-US Electric Utility Comparisons,” Socio-Economic Planning Sciences, Vol. 2, No. 4, 2007, pp. 2-16.

[10] A. Fallahi, “Measuring Efficiency and Productivity Change in Electricity Generation,” Energy, Vol. 11, No. 36, 2011, pp. 6398-6405.
http://dx.doi.org/10.1016/j.energy.2011.09.034

[11] M. Lowry, L. Getachew and D. Hovde, “Cost Benchmarking Performance Econometrics: Distributors for the U.S. Energy,” Energy Journal, Vol. 3, No. 26, 2005, pp. 1-18.

[12] C. Martínez, “Sources of Cost Overruns and Distortions in Public Utilities Mexico,” Mexican Economy New Era, 2010, pp. 31-89.

[13] N. Montes, “Limitations of the New Financing Schemes for the Power Industry in Mexico,” In: L. Aragon Campos, Ed., The British Model in Mexican Electricity Industry, Twenty First Century Publishers, Mexico, 2003.

[14] L. Simar, “Estimating Efficiencies from Frontier Models with Panel Data: A Comparison of Parametric, Non-Parametric and Semi-Parametric Methods with Bootstrapping,” Journal of Productivity Analysis, Vol. 1-2, No. 3, 1992, pp. 171-203.
http://dx.doi.org/10.1007/BF00158775

[15] M. Tsutsui and M. Goto, “A Multi-Division Efficiency Evaluation of U.S. Electric Power Companies Using a Weighted Slacks-Based Measure,” Socio-Economic Planning Sciences, Vol. 43, No. 3, 2009, pp. 201-208.

[16] S. Thomas, “The British Experience,” In: L. Campos Aragon, Ed., The British Model Electric Industry Mexican, Twenty First Century Publishers, Mexico, 2003.

[17] R. Hormazábaly and H. Van de Wyngard, “Methodologies for Determining Boundaries of Efficiency in Distribution Costs,” Chile Engineering Magazine, No. 15, 2007, pp. 1-7.

[18] G. Bensusán, “The Mexican Electricians Union and Labor Restructuring of Luz y Fuerza del Centro,” Mexican Review of Sociology, Vol. 67, No. 3, 2005, pp. 543-591.