#

Ease of Doing Business in

Iceland

Iceland Download Profile (1712.6KB, pdf)
Region OECD high income
Income Category High income
Population 330,823
GNI Per Capita (US$) 49,730
City covered Reykjavik

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 20 18 down
2
78.91 78.88 down
0.03
Starting a Business 34 35 up
1
92.64 92.44 up
0.20
Dealing with Construction Permits 70 68 down
2
71.66 71.61 up
0.05
Getting Electricity 9 9
-
92.24 92.24
-
Registering Property 15 15
-
86.61 86.61
-
Getting Credit 62 60 down
2
60.00 60.00
-
Protecting Minority Investors 22 18 down
4
70.00 70.00
-
Paying Taxes 29 31 up
2
84.88 84.88
-
Trading across Borders 66 66
-
80.27 80.27
-
Enforcing Contracts 32 31 down
1
69.10 69.10
-
Resolving Insolvency 14 14
-
81.70 81.65 up
0.05

DB 2017 Rank:

9

DB 2016 Rank:

9

Change in Rank:

0

DB 2017 DTF (% points):

92.24

DB 2016 DTF (% points):

92.24

Change in DTF (% points):

0.00

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh) 8.8
Name of utility Orkuveita Reykjavíkur
City Reykjavik
Indicator Iceland OECD high income
Procedures (number) info_outline 4 4.8
Time (days) info_outline 22 76.2
Cost (% of income per capita) info_outline 10.6 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 7 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to Orkuveita Reykjavik, await inspection and receive estimate

    Agency: Orkuveita Reykjavíkur

    An application can be submitted online. The following documents are needed with the application: Siteplan of the warehouse in scale 1:500 - to see how it is located to the existing electricity system, location of electrical fuse/switch board - to see where the cable is coming into the warehouse and single line diagram of the electrical fuse/switch board. There is no notarization needed of the documents. There is no internal inspection. However, the electrician who is in charge for the internal wiring must be qualified (having the right examination) and be approved by the Icelandic Construction Authority (a governmental agency responsible for the safety of electrical housing installation) and registered on a list. The Icelandic Construction Authority is now responsible for administration of law and regulations regarding Electrical Safety and took over these responsibilities from the Consumer Agency. The utility has this list and the list is renewed monthly. If the electrician applying for the 200A connection is not on the list, the utility refuses the application for connection. When a new customer applies for a new connection to OR's distribution system, he/she can apply for a supply contract with the sales department (OR) or the customer can inform the sales department that he/she wants to make a supply contract with another electricity company/supplier.

    7 calendar days ISK 0
    * 2

    Receive site inspection by Orkuveita Reykjavik

    Agency: Orkuveita Reykjavíkur

    An external inspection is conducted to confirm that the given information in the submitted documents and drawings is accurate. The external inspection is not necessary to prepare an estimate. There is no extra fee for the inspection, the cost is included in the application fee. It is the main rule that someone from the customer's party is present during the inspection, in case that OR is having remarks on the site and the customer needs to fix them before the external connection works start.

    5 calendar days ISK 0
    3

    Pay connection fee and await completion of external works

    Agency: Orkuveita Reykjavíkur

    When the customer has given all necessary documents/drawings to the utility and the site inspection confirms that it fulfills the requirement of the utility, then the utility sends the invoice to the customer. The customer can pay the connection fee only via a bank. The customer gets an invoice/giro from the bank. This is always before the external work is done. If the site inspection is according to given documents, then there should be no waiting time until external works can start. The external connection works involve the following:
    the utility makes a ditch/trench from the nearest cable distribution cabinet to the warehouse's fuse board, a cable is laid in the trench and cable terminations are made to the cable end which is connected to the distribution cabinet (without fuse). The utility obtains the excavation permit during this step.
    All material for the external connection is provided by the utility.

    14 calendar days ISK 698,041
    4

    Receive meter installation by Frumherji and submit electrician's notification to Construction Authority

    Agency: Frumherji

    The meter is installed when the customer requires it. It is installed by another company which is responsible for this service since this service was outsourced a few years ago. OR has outsourced the meter-department to Frumherji. Frumherji owns the meters and rents them to OR. There is no charge for the installation of the meter, this is included in the connection fee. The customer has no direct interaction with Frumherji. When all connections are finished (electrical fuse board + distribution cabinet) and the meter is installed, then the current can start flowing. When the utility has done the connection of the warehouse to the distribution system, the electrician of the contractor who built the warehouse must fill out a form and send it to the Iceland Construction Authority which is now responsible for the safety of electrical housing installation. The utility also informs this agency that this house is now connected to the distribution system. The electricity can start flowing before the electrician sends the form to the Iceland Construction Authority.

    1 calendar day ISK 0

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8) 7.0
    Total duration and frequency of outages per customer a year (0-3) 3.0
    System average interruption duration index (SAIDI) 0.47
    System average interruption frequency index (SAIFI) 0.41
    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) 1.0
    Does the distribution utility use automated tools to restore service? Yes
    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) 0.0
    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) 1.0
    Are effective tariffs available online? Yes
    Link to the website, if available online http://www.or.is/vorur-thjonusta/verdskra-og-skilmalar http://www.on.is/fyr...
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 8.8

    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.