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Ease of Doing Business in

Hungary

Hungary Download Profile (1761.4KB, pdf)
Region OECD high income
Income Category High income
Population 9,844,686
GNI Per Capita (US$) 12,990
City covered Budapest

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 41 40 down
1
73.07 72.74 down
0.33
Starting a Business 75 71 down
4
87.28 87.10 up
0.18
Dealing with Construction Permits 69 66 down
3
71.70 71.69 up
0.01
Getting Electricity 121 118 down
3
60.13 60.11 up
0.02
Registering Property 28 28
-
80.08 80.20 down
0.12
Getting Credit 20 19 down
1
75.00 75.00
-
Protecting Minority Investors 81 78 down
3
55.00 55.00
-
Paying Taxes 77 79 up
2
74.46 73.74 up
0.72
Trading across Borders 1 1
-
100.00 100.00
-
Enforcing Contracts 8 13 up
5
75.79 73.94 up
1.85
Resolving Insolvency 63 63
-
51.25 50.58 up
0.67

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

DB 2017 Rank:

121

DB 2016 Rank:

118

Change in Rank:

down3

DB 2017 DTF (% points):

60.13

DB 2016 DTF (% points):

60.11

Change in DTF (% points):

up0.02

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh): 25.1
Name of utility: Budapesti Elektromos Művek Rt. (ELMű Rt)
City: Budapest
Indicator Hungary OECD high income Overall Best Performer
Procedures (number) info_outline 5.0 4.8 ..
Time (days) info_outline 257.0 76.2 ..
Cost (% of income per capita) info_outline 93.9 62.5 ..
Reliability of supply and transparency of tariff index (0-8) info_outline 6.0 7.5 ..
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to ELMŰ Hálózati Kft. and await estimate

    Agency: ELMŰ Hálózati Kft.

    The application can be submitted in person or by mail or e-mail with advanced electronic signature. Document that need to be attached is a map with the detail of location of withdrawal. The electrician who did the internal wiring has to sign a statement saying that the internal wiring was done in accordance with approved engineering plans and all relevant standards.

    25 calendar days HUF 0
    * 2

    Receive external site inspection by utility

    Agency: ELMŰ Hálózati Kft.

    An external inspection carried out by the utility is necessary for a technical study plan. It is required that someone from the customer's party is present. The preliminary technical-economic briefing concerns the preliminary technical contents of the external connection. There is no inspection of the internal wiring.

    1 calendar day HUF 0
    3

    Await completion of external works by utility

    Agency: ELMŰ Hálózati Kft.

    The utility is carrying out the design and the actual external connection works. The utility also obtains all necessary permits (from other utilities, municipality) on behalf of the customer.

    224 calendar days HUF 3,094,800
    * 4

    Receive second external inspection by utility

    Agency: ELMŰ Hálózati Kft.

    Before starting to build the cable line, the utility checks if the actual circumstances of the location of the warehouse fit to the electrical plans. This is an intermediate step after the design of the external connection and obtaining the permits, before the actual external connection works. The determination of the final technical content is done upon execution planning where the customer's presence is required.

    1 calendar day HUF 0
    5

    Sign contracts and obtain meter installation, final connection and electricity flow

    Agency: ELMŰ Hálózati Kft.

    The customer has to sign the grid usage contract, grid connection contract and supply contract. These three contracts are not necessarily signed in parallel. Upon connection, the grid charge becomes due and payable, while the date of conclusion of the supply contract is up to the customer. The first two contracts take only few hours (sample contracts to fill in) while the third one takes some days. The installation of the meter and the start of supply of electricity require all three contracts to be signed. The meter is not installed at the same time as when the connection is done. The utility (Measurement technology and meter controlling department) is installing the meter.

    8 calendar days HUF 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8) 6.0
    Total duration and frequency of outages per customer a year (0-3) 2.0
    System average interruption duration index (SAIDI) 3.12
    System average interruption frequency index (SAIFI) 1.43
    Mechanisms for monitoring outages (0-1) 1.0
    Does the distribution utility use automated tools to monitor outages? Yes
    Mechanisms for restoring service (0-1) 0.0
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1) 1.0
    Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of supply? Yes
    Financial deterrents aimed at limiting outages (0-1) 1.0
    Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages exceed a certain cap? Yes
    Communication of tariffs and tariff changes (0-1) 1.0
    Are effective tariffs available online? Yes
    Link to the website, if available online http://njt.hu/cgi_bin/njt_doc.cgi?docid=173040.286068
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 25.1

    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.