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Getting Electricity in

Ethiopia

Below is a detailed summary of the procedures, time and cost required for a business to obtain an electricity connection for a newly constructed building in Ethiopia.

This information was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 190 economies. The most recent round of data collection was completed in June 2016.

Compare Ethiopia to 189 other economies.

  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to utility and await site visit

    Agency: Ethiopian Electric Utility

    The customer should bring the application paper by specifying the required power in kilo watt to the nearby EEPCO district office. If the customer requirement is greater than 15 KW power, the electrical drawing diagram, done by the professional who has electrical design license should be attached. The customer should pay for labour and transport cost of the estimator. The application must be accompanied by: the location map of the warehouse; the electrical plans, copy of business license, lease document (if applicable), certificate of conformity (obtained after the final inspection) and site plan. The professional electrician has to be licensed with EEPCO and Ministry of Urban Development (for electrical design)

    14 calendar days ETB 225
    2

    Receive site visit from utility engineer and await estimate

    Agency: Ethiopian Electric Utility

    The technician from EEPCO will visit the site plan to check for the required materials and check the electricity plan with the layout of the building and notes the nearest connection point.

    7 calendar days ETB 0
    3

    Receive and pay estimate and receive internal wiring inspection

    Agency: Ethiopian Electric Utility

    The connection cost is estimated on the power required. EEPCO provides all material and is responsible for the labor from the electrical grid to the meter. It is most likely that a distribution transformer would be required. Deposit for the meter is: 10% of the cost of power This deposit is reimbursed when the connection is terminated. The technician will visit the site plan to check for the required materials and at the same time, will do the internal inspection.

    14 calendar days ETB 152,670.4
    4

    Receive external connection, meter installation and electricity flow

    Agency: Ethiopian Electric Utility

    The connection cost requested by EEPCO will include all costs including meter installation.

    60 calendar days ETB 0

  • 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) ..
    System average interruption frequency index (SAIFI) ..
    Mechanisms for monitoring outages (0-1)
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1)
    Does the distribution utility use automated tools to restore service? No
    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.eepco.gov.et/tarrif20.php
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 4.4

    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.