Panama

Getting Electricity in

Panama

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 Panama.

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.

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  • Standardized Company

  • Name of Utility: Unión FENOSA
  • City: Panama City

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No. Procedure Time to Complete Associated Costs
1 The customer must obtain an occupancy permit that includes a certification of the internal wiring and verification of the required electricity load from the Fire Department

The certification of the internal wiring (ELEC-411 resolution) is obtained from the Fire Department in the context of the occupancy permit and certifies the internal electrical wiring installation. Safety requirements are governed by RIE (NEC + local regulations) - 1999 NESC 2007 Ministerio de Trabajo (reglamento de seguridad en la construcción) 2006.
Agency: The municipality 		21 calendar days USD 250.0
* 2 In preparation for the certification of internal wiring the Fire Department conducts a visit of the work

The Fire Department will visit the site to verify that the electrical installations are in accordance with the standards and approved designs.
Agency: The Fire Department 		7 calendar days USD 45.0
3 The client sends a request for electricity connection to Unión FENOSA

With the service application the customer must submit the following documents:

• Copy of personal identification card or passport (or passport of the Directorate of Immigration and Naturalization), in the case of foreign natural person a copy of Certificate of Public Registry of the Company for the legal person.
• If the natural person or legal representative of the company is unable to attend personally to sign the supply contract, the following will be needed:
o For individuals: original letter of authorization with copy of identity card of the grantor and of the authorized person.
o For legal entity: Notarized power of attorney and copy of the identity document of the grantor and of the empowered.
o A simple copy of the deed of ownership or certificate of Public Registry, of the lease contract or certificate of residence issued by a competent authority, attesting to the ownership or legal possession of the property.
• For new buildings or facilities not occupied a copy of occupancy permit.
• In cases of customers such as buildings, exhibitions, fairs, circuses, etc. requiring a temporary supply, they must submit the corresponding authorization to operate issued by competent authority.
• Submit certification of good payment history or references of recent credit, i.e. not exceeding a period of 5 years from the date the request is made. In their absence, the applicant must pay the security deposit provisions established in the regulation.
• Pay the connection tariff according to the fee statement in force.
An estimate does not have to be prepared, because there is fixed installation fee of $107. In addition, a security deposit has to be paid of one month of expected future consumption. The security deposit is returned to the customer with interest after one year of service. Detail of charges. If the customer's warehouse is less than 100m from power lines, the Act states that the work has to be free.
Once the customer request arrives with Union FENOSA, a service order is established internally.

Agency: Unión FENOSA 		7 calendar days USD 801.5
* 4 Unión FENOSA subcontracts a company to carry out an external inspection

After the customer has submitted the service request a subcontractor of Unión FENOSA inspects the site and determines what type of works are needed. It is not necessary for a representative of the customer to be present.
Agency: Unión FENOSA 		2 calendar days no charge
5 The client signs the supply contract and Unión FENOSA's subcontractor performs the works of the external connection

The utility, not the customer obtains the excavation permit/right of way from the Ministerio de Obras Publicas (MOP). The subcontractor carries out the connection works to the low voltage network. All material is provided by Union FENOSA. The customer is only responsible for the internal connection from their property to the meter box. 3 transformers of 50 kW each are installed and the connecting cables are laid out. Last, the meter is installed and the electricity starts flowing.
Agency: Unión FENOSA 		7 calendar days no charge
* Takes place simultaneously with another procedure.
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