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Ease of Doing Business in

Iran, Islamic Rep

Iran, Islamic Rep Download Profile (1789.7KB, pdf)
Region Middle East & North Africa
Income Category Upper middle income
Population 79,109,272
GNI Per Capita (US$) 6,019
City covered Tehran

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 120 117 down
3
57.26 57.08 down
0.18
Starting a Business 102 97 down
5
85.06 84.86 up
0.20
Dealing with Construction Permits 27 27
-
78.50 77.90 up
0.60
Getting Electricity 94 90 down
4
69.15 69.17 down
0.02
Registering Property 86 85 down
1
64.17 64.33 down
0.16
Getting Credit 101 97 down
4
45.00 45.00
-
Protecting Minority Investors 165 166 up
1
35.00 35.00
-
Paying Taxes 100 99 down
1
69.79 69.79
-
Trading across Borders 170 171 up
1
40.66 39.38 up
1.28
Enforcing Contracts 70 69 down
1
60.00 60.00
-
Resolving Insolvency 156 155 down
1
25.25 25.32 down
0.07

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

DB 2017 Rank:

94

DB 2016 Rank:

90

Change in Rank:

down4

DB 2017 DTF (% points):

69.15

DB 2016 DTF (% points):

69.17

Change in DTF (% points):

down0.02

STANDARDIZED CONNECTION
Price of electricity (US cents per kWh) 6.2
Name of utility Great Tehran Electricity Distribution Company (GTEDC)
City Tehran
Indicator Iran, Islamic Rep Middle East & North Africa OECD high income
Procedures (number) info_outline 6 5.0 4.8
Time (days) info_outline 77 81.7 76.2
Cost (% of income per capita) info_outline 828.6 771.8 62.5
Reliability of supply and transparency of tariff index (0-8) info_outline 5 4.2 7.5
  • Measure of efficiency
    No. Procedure Time to Complete Associated Costs
    1

    Submit application to GTEDC and await external inspection

    Agency: Great Tehran Electricity Distribution Company (GTEDC)

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

    9 calendar days USD 0
    * 2

    Receive external inspection by GTEDC

    Agency: Great Tehran Electricity Distribution Company (GTEDC)

    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.

    1 calendar day IRR 5,000,000
    3

    Obtain approval from GTEDC for design of private substation

    Agency: Great Tehran Electricity Distribution Company (GTEDC)

    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 Great Tehran Electricity Distribution Company (GTEDC) for approval. The Great Tehran Electricity Distribution Company (GTEDC) has a unified design that the customer can use.

    20 calendar days USD 14,000
    4

    Obtain material for external works

    Agency: Market

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

    Transformers are often missing in the utility's stock. The customer can buy the materials, or pay the market price to the utility and the utility will then buy the materials. For smaller projects, it is usually the utility who would buy the materials. For larger projects, the customer might want to buy the materials themselves. 140 kVA is considered a medium project. It is becoming more common with time for the utility to purchase the material.

    If the customer purchases the material, they will need to provide a certification (the utility provides customers with a detailed list of the materials to buy).

    7 calendar days USD 5,000
    5

    Obtain external works from GTEDC

    Agency: Great Tehran Electricity Distribution Company (GTEDC)

    Great Tehran Electricity Distribution Company (GTEDC)'s contractor completes the external connection works by installing substation and connecting it to its medium-voltage network.

    35 calendar days USD 30,000
    6

    Obtain meter installation and final connection from GTEDC

    Agency: Great Tehran Electricity Distribution Company (GTEDC)

    When the works are completed, Great Tehran Electricity Distribution Company (GTEDC) installs the meter and electricity is turned on immediately.

    6 calendar days USD 700

    * 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) 5.2
    System average interruption frequency index (SAIFI) 4.8
    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? Yes
    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.tbtb.co.ir/fa/home/khadamat
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 6.2

    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.