Selection of electrical energy supplier based on multicriteria decision aid

TLDR: A marketing dispute for the future sale of electric energy among companies that generate energy and a company that distributes energy in the new private sector of Brazilian electric power system is dealt with.

Abstract: The paper deals with a marketing dispute for the future sale of electric energy among companies that generate energy and a company that distributes energy in the new private sector of Brazilian electric power system. Privatization of this sector in Brazil is based on the principle of implementation of competition wherever is possible, and regulation whenever necessary. The price and availability of energy to be offered are considered as a criteria or attributes for the analysis and selection. The ELECTRE I and II methods were used. These are methods of the multicriteria decision-aid field based on the dominance relation. Results of both methods were similar: they favored the companies with lowest prices but with reasonable availability indexes. The decision model formulation is presented, including the preferred modeling of the decision maker. The case study analyzed includes numerical results with recommendations and a sensitivity analysis of the model. This case study is based on a real context of a power electric company.