Access to reliable and affordable electricity is…

Access to reliable and affordable electricity is…

Getting Electricity

Access to reliable and affordable electricity is vital for businesses. To counter weak electricity supply, many firms in developing economies have to rely on self-supply, often at a prohibitively high cost. Whether electricity is reliably available or not, the first step for a customer is always to gain access by obtaining a connection.

Procedures to obtain an electricity connection (number)

Submitting all relevant documents and obtaining all necessary clearances and permits. Completing all required notifications and receiving all necessary inspections.

Obtaining external installation works and possibly purchasing material for these works. Concluding any necessary supply contract and obtaining final supply

Time required to complete each procedure (calendar days)

  • It is at least 1 calendar day
  • Each procedure starts on a separate day
  • Does not include time spent gathering information
  • Reflects the time spent in practice, with little follow-up and no prior contact with officials Cost required to complete each procedure (% of income per capita)
  • Official costs only, no bribes
  • Excludes value added tax

The reliability of supply and transparency of tariffs index

Sum of the scores of six component indices:

  • Duration and frequency of outages
  • Tools to monitor power outages
  • Tools to restore power supply
  • Regulatory monitoring of utilities’ performance
  • Financial deterrents aimed at limiting outages
  • Transparency and accessibility of tariffs
  • Price of electricity (cents per kilowatt-hour)
  • Price based on monthly bill for commercial warehouse in case study
  • Price of electricity is not included in the calculation of distance to frontier nor ease of doing business ranking.

What are the details?

The indicators reported here for Iran, Islamic Rep. are based on a set of specific procedures—the steps that an entrepreneur must complete to get a warehouse connected to electricity by the local distribution utility.

Summary of time, cost and procedures for getting electricity in Iran

Source: Doing Business database.     * Takes place simultaneously with previous procedure

The reliability of supply and transparency of tariffs index encompasses quantitative data on the duration and frequency of power outages as well as qualitative information on the mechanisms put in place by the utility for monitoring power outages and restoring power supply, the reporting relationship between the utility and the regulator for power outages, the transparency and accessibility of tariffs and whether the utility faces a financial deterrent aimed at limiting outages (such as a requirement to compensate customers or pay fines when outages exceed a certain cap).

The index ranges from 0 to 8, with higher values indicating greater reliability of electricity supply and greater transparency of tariffs.

Reliability of Supply and Transparency of Tariff Index in Iran


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