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Getting Electricity in

Iraq

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 Iraq.

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 Iraq to 189 other economies.

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

    Obtain clearance from property tax agency

    Agency: Property Tax agency

    The clearance is needed to obtain an electricity connection for commercial buildings. Moreover, the documents needed to submit with the application are as follows:
    - Land title
    - Tax clearance
    - Identity documents

    Property Tax agency has to delegate an Inspector to detect the location of the property. The Inspector shall inspect the property to make sure there is no change in the property different from what is installed in the record of the building. That may require the imposition of fines or additional taxes. After the inspection the clearance report has to be sent by internal mail.

    7 calendar days USD 0
    2

    Submit application to Ministry of Electricity and await estimate

    Agency: Ministry of Electricity

    The client submits a petition to the local distribution office (covering the area where the warehouse is located) to request supply of electricity. The petition will then be reviewed by the office manager, after which the planning department will decide on the way to feed the warehouse with supply (directly to the LV network or through installing a distribution transformer). That same department will issue a report deciding on the availability of capacity to accommodate the customer's demand.
    In this case, a distribution transformer would be needed.

    26 calendar days IQD 0
    * 3

    Receive site inspection by Ministry of Electricity

    Agency: Ministry of Electricity

    The office manager will request the technical department to inspect the site. The inspection is conducted for the following reasons:
    a. To check whether the wiring (the interface to the public network) is done properly and ready to be connected to the distribution network.
    b. To identify the nearest connection point to the 11 kV feeder.
    c. To determine the material required to carry out the connection works.
    The inspection is followed by a report addressed to the manager.

    1 calendar day IQD 10,000
    4

    Purchase of distribution transformer by the customer.

    Agency: Store

    2 calendar days IQD 6,000,000
    5

    Test the purchased transformer at the Ministry of Electricity

    Agency: Ministry of Electricity

    1 calendar day IQD 300,000
    6

    Obtain external works and final connection from Ministry of Electricity

    Agency: Ministry of Electricity

    The manager reviews the inspection report and notes from the local office on the availability of material, then asks the commercial department to determine the cost of material and services.
    The client needs to pay all the fees in advance. The manager checks the entire petition (paper copy) has been filled out. If the form is complete and according to the regulations in place, the manager will request implementation.
    The technical team will take all necessary actions to bring the materials to the site and carry out the works: install the poles (distance of 25 meters between every 2 poles), the overhead wires, a 250-kVA transformer and its accessories, and connect the warehouse to the distribution network.
    In theory, both the MV and the LV networks can be overhead or underground in Baghdad. In the area assumed however, the most likely case is to have overhead connection.
    Because the works are carried out by the utility, the client is not requested to obtain any special permit. In the case of an underground connection, the Ministry of Electricity will need to obtain an excavation permit. In the case of an overhead connection, no such permit is even required.

    20 calendar days USD 9,000

    * 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) 2352
    System average interruption frequency index (SAIFI) 1008
    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? 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? No
    Link to the website, if available online Link provided: http://www.moelc.gov.iq/index.php?name=Pages&op=page&pid=230...
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 14.3

    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.