Iran, Islamic Rep.

Getting Electricity in

Iran, Islamic Rep.

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 Iran, Islamic Rep..

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 185 economies. The most recent round of data collection was completed in June 2012.

Compare Iran, Islamic Rep. to 185 other economies.

  • Standardized Company

  • Name of Utility: Tehran Regional Electric Company (TREC)
  • City: Tehran

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No. Procedure Time to Complete Associated Costs
1 The client applies for electricity connection with Tehran Regional Electricity Company (TREC) and awaits estimate of connection fees

The client needs to submit an application for electricity connection with Tehran Regional Electricity Company (TREC) in person, and attach to that a certificate with the type of activity.

Agency: Tehran Regional Electricity Company (TREC) 		9 calendar days no charge
* 2 The client obtains external inspection from Tehran Regional Electricity Company (TREC)

After the application process, an engineer from the utility will visit the site to assess whether the grid will have enough capacity to accommodate the new connection. The site visit is necessary because the utility’s maps are not up to date. Furthermore, the utility will also inspect to check that the estimated consumption submitted by the applicant is correct.
Then they prepare an estimate of the connection fees for the client to later pay at a bank. The client also signs a contract with the utility at the time of applying.
Agency: Tehran Regional Electricity Company (TREC) 		1 calendar day no charge
3 The client obtains approval of the design of the private substation by Tehran Regional Electricity Company (TREC)

In the case of 140 kVA a substation is most likely needed. A private electrical firm (possibly the same as the one that did the internal wiring) designs the substation and submits it to TREC for approval.
Agency: Tehran Regional Electricity Company (TREC) 		7 calendar days USD 14,000.0
4 The client obtains material for the external works

External works consist of the utility building a private distribution substation.

There is only one official company that produces transformers: Iran Transformer Company. The other option is to buy a transformer from the black market. Companies will choose based on the urgency of the connection.

Buying metering equipment also poses a problem for companies. Like the transformer, companies have 2 options: purchase the equipment through official channels (TREC), or through the “free (black) market.

Agency: Iran Transformer Company or black market 		103 calendar days USD 5,000.0
* 5 The client obtains an excavation permit from Tehran Municipality

The customer will need to apply for an excavation permit with Tehran municipality.
Agency: Tehran Municipality 		15 calendar days IRR 5,000,000.0
6 The client obtains external works from Tehran Regional Electricity Company (TREC)

Tehran Regional Electricity Company (TREC) completes the external connection works by installing substation and connecting it to its medium-voltage network.
Agency: Tehran Regional Electricity Company (TREC) 		20 calendar days USD 30,000.0
7 The client obtains meter installation and final connection from Tehran Regional Electricity Company (TREC)

When the works are completed and the customer has bought the meter, a different department at the utility installs the meter and electricity is turned on immediately.
Agency: Tehran Regional Electricity Company (TREC) 		1 calendar day USD 700.0
* Takes place simultaneously with another procedure.
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