MULTI-CRITERIA DECISION ANALYSIS OF NIGERIA ELECTRICITY DISTRIBUTION COMPANIES USING ENTROPY WEIGHT AND TOPSIS METHOD.

Abstract

Nigeria as a country on it own suffers from ineffectiveness and inefficiency in the man- agement of the distribution of electricity. This has negatively affected the country particularly in the last two decades. Nigeria Electricity Distribution Companies (Disco) one of the front- end organizations in the electricity value chain serve as the interface between the citizens /customers and the power sector consequently. Topsis and entropy weight method has been used to select the best supplier of electricity among the 11 distribution companies. The sup- plier performance system has gained importance in assessing and evaluating suppliers in order to determine suppliers level. The supplier assessment was proposed with thirteen (13) indicators such as quality, production, qualification rate, rework return rate, price ratio, restocking fee saving rates, factory inspection qualification rate, equipment failure rate, av- erage service response tina (day),production plan tireless rate, production plan punctuality rate, production information submitted timeless rate, production information submitted punc- tuality rate and cooperation degree was used in evaluating the performance of electricity distribution companies. The weight of each indicator was determined by entropic weight and topsis method. In order to get the ideal and anti-ideal solution, four consecutive years was considered, 2016, 2017, 2018 and 2019. The results of performance evaluation show that among the 11 listed companies in 2016, the top three power distribution companies were Kaduna distribution company, Jos distribution company and Yola distribution company which have closeness coefficient values of 0.8228, 0.5080, and 0.4230 respectively. Ac- cording to the average performance ranking in the four years, Kaduna distribution company (0.6825) was ranked first, Benin distribution company (0.5752) was second and company Yola distribution company (0.5434) was third. Since this research work is to ascertain the best supplier of electricity, it is shown Kaduna Electricity Distribution company is the overall best and should be emulated by order suppliers in order to improve distribution of electricity.