#

Ease of Doing Business in

Azerbaijan

Azerbaijan Download Profile (1751.1KB, pdf)
Region Europe & Central Asia
Income Category Upper middle income
Population 9,651,349
GNI Per Capita (US$) 6,560
City covered Baku

190

1

DB 2017 Rank

1

100

DB 2017 DTF (% points)

  • local_library
  • group
Topics DB 2017 Rank DB 2016 Rank info_outline Change in Rank DB 2017 DTF (% points) info_outline DB 2016 DTF (% points) info_outline Change in DTF (% points) info_outline
Overall 65 61 down
4
67.99 67.84 down
0.15
Starting a Business 5 5
-
97.74 97.75 down
0.01
Dealing with Construction Permits 127 121 down
6
63.63 64.13 down
0.50
Getting Electricity 105 104 down
1
64.83 64.10 up
0.73
Registering Property 22 21 down
1
82.52 82.55 down
0.03
Getting Credit 118 109 down
9
40.00 40.00
-
Protecting Minority Investors 32 30 down
2
65.00 65.00
-
Paying Taxes 40 41 up
1
83.52 83.08 up
0.44
Trading across Borders 83 85 up
2
72.28 71.48 up
0.80
Enforcing Contracts 44 43 down
1
65.66 65.66
-
Resolving Insolvency 86 82 down
4
44.77 44.68 up
0.09

Positive= Doing Business reform making it easier to do business.Negative= Change making it more difficult to do business.

DB 2017 Rank:

105

DB 2016 Rank:

104

Change in Rank:

down1

DB 2017 DTF (% points):

64.83

DB 2016 DTF (% points):

64.10

Change in DTF (% points):

up0.73

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh) 5.9
Name of utility Azerishiq OJSC
City Baku
Indicator Azerbaijan Europe & Central Asia OECD high income
Procedures (number) info_outline 7 5.6 4.8
Time (days) info_outline 69 112.3 76.2
Cost (% of income per capita) info_outline 150.4 375.5 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 4 5.2 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to Azerishiq OJSC

    Agency: Azerishiq OJSC

    The customer submits application for a new electricity connection to Azerishiq OJSC. The following documents must also be submitted in paper format:

    • copy of state registration certificate of legal entity;
    • copy of document proving the right of ownership or use of a facility and a land plot where the facility is situated;
    • the permit of local executive power authority on the construction of a facility;
    • break down of the power load required;

    12 calendar days AZN 0
    * 2

    Receive site inspection by Azerishiq OJSC for preparing technical conditions

    Agency: Azerishiq OJSC

    A network engineer from Baku Electric Shabaka will visit the site to determine the arrangements for an optimal connection and aid the preparation of technical conditions. It is required that someone from the applicant’s party is present at the site during the inspection.

    1 calendar day AZN 0
    3

    Await completion and approval of design of external connection

    Agency: Project planning organization

    The customer hires a project planning organization to design the external electrical connection plans based on the technical conditions issued by Azerishiq OJSC. a. The fee for the design varies depending on the project. The project design firm obtains all the approval from Azerishiq OJSC.

    15 calendar days AZN 377.33
    4

    Obtain excavation permit

    Agency: Ministry of Transport

    Depending on the connection contract or agreement either the utility or the electrical contractor obtains an excavation permit. In addition and depending on where the road is, it might be required to get other permits from the municipality (if in the center of the city), communal services, gas, water, etc.

    13 calendar days AZN 0
    5

    Await completion of external works

    Agency: Azerishiq OJSC/Electrical contractor

    The customer has a choice of hiring a licensed electrical installation organization or signing a contract with the utility to carry out the external connection works.

    20 calendar days AZN 7,802
    6

    Receive external and internal inspections and obtain operation permit

    Agency: Energonadzor (State Energy Inspectorate)

    After the completion of the external connection works there is a final inspection by Energonadzor (State Energy Inspectorate) which issues an operation permit. Energonadzor checks the compliance of the installation with the technical conditions.

    2 calendar days AZN 0
    7

    Conclude supply contract with Azerishiq OJSC and await final connection

    Agency: Azerishiq OJSC

    The customer must submit the operation permit to the utility and concludes a supply contract. Once this is completed, the customer is connected to the electrical network and the electricity starts flowing.

    7 calendar days AZN 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8)
    Total duration and frequency of outages per customer a year (0-3)
    System average interruption duration index (SAIDI) 0.97
    System average interruption frequency index (SAIFI) 1.69
    Mechanisms for monitoring outages (0-1)
    Does the distribution utility use automated tools to monitor outages? Yes
    Mechanisms for restoring service (0-1)
    Does the distribution utility use automated tools to restore service? Yes
    Regulatory monitoring (0-1)
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? No
    Financial deterrents aimed at limiting outages (0-1)
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? No
    Communication of tariffs and tariff changes (0-1)
    Are effective tariffs available online? Yes
    Link to the website, if available online http://www.tariffcouncil.gov.az/?/az/content/70/
    Are customers notified of a change in tariff ahead of the billing cycle? No
    Answer
    Price of electricity (US cents per kWh) 5.9

    Note:

    If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff index.

    If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.