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Getting Electricity in

Madagascar

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 Madagascar.

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 Madagascar to 189 other economies.

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

    Submit application to JIRAMA and await estimate

    Agency: Jiro sy rano malagasy (JIRAMA)

    The application can be submitted by mail, letter, or in person at one of the utility’s agencies. The client will need to attach some documents to the application, with the client’s personal and professional details, a description of the works and of the electrical installation, as well as a notarized Signing Authority (“pouvoir de signature”).

    15 calendar days MGA 0
    * 2

    Receive external inspection by JIRAMA

    Agency: Jiro sy rano malagasy (JIRAMA)

    When the utility has received the application, it inspects the client’s site to determine the specifics of the connection and prepare an estimate of the connection fees.

    1 calendar day MGA 0
    3

    Obtain right of way from local authority

    Agency: Local authority (Commune)

    The customer needs to obtain a right of way from the 'Commune' before paying the estimate so that the utility can carry out the external works of expanding the overhead network.

    50 calendar days MGA 60,000
    * 4

    Buy material for external works from local store

    Agency: Local store

    The material for a 140-kVA connection is usually not available in the utility’s stock. The client can then choose to either buy the material from a local store or ask the utility to obtain it. JIRAMA now possesses most of the material, except for transformers.

    18 calendar days MGA 0
    5

    Obtain testing of material and completion of external works by JIRAMA

    Agency: Jiro sy rano malagasy (JIRAMA)

    Only the utility is in charge of the external works. The client needs to pay the connection fees at the utility’s offices for the works to start. In this case an expansion of the network (installation of a unit substation) is necessary. JIRAMA tests the client's material before carrying out the works to check they are conform to its standards.

    The material is inspected to ensure its conformity to the utility's technical standards before the works start.

    19 calendar days MGA 55,748,923
    6

    Sign supply contract, pay advance and await final connection

    Agency: Jiro sy rano malagasy (JIRAMA)

    The final connection is carried out after the client has signed a supply contract and paid an advance on consumption. The installation of the meter is carried out by the utility.

    Madagascar had suffered from some capacity issues over the last few years. New power projects completed recently (JIRAMA installed an extra 66MW on Tana interconnected network) did however, increase the existing capacity so that more customers can obtain supply. Despite the availability of supply, JIRAMA still needs to deal with a back-log of applications submitted over the many years when obtaining a connection was not yet possible. The utility also accepts new applications and prepares estimates of connection costs for those.

    Delays are due to treating old and new applications and to lack of some materials, namely transformers, cables, etc.

    366 calendar days MGA 9,801,267.76

    * Takes place simultaneously with previous procedure.

  • Measure of quality
    Answer
    Reliability of supply and transparency of tariff index (0-8) 0.0
    Total duration and frequency of outages per customer a year (0-3) 0.0
    System average interruption duration index (SAIDI) ..
    System average interruption frequency index (SAIFI) ..
    Mechanisms for monitoring outages (0-1) 0.0
    Does the distribution utility use automated tools to monitor outages? No
    Mechanisms for restoring service (0-1) 0.0
    Does the distribution utility use automated tools to restore service? No
    Regulatory monitoring (0-1) 0.0
    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) 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.ore.mg/ http://www.jirama.mg/index.php?w=scripts&f=Jirama-page.p...
    Are customers notified of a change in tariff ahead of the billing cycle? Yes
    Answer
    Price of electricity (US cents per kWh) 13.1

    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.