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flash_on Getting Electricity

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of tariffs and the price of electricity. The most recent round of data collection for the project was completed in June 2017. See the methodology for more information.

Frequently Asked Questions

- How are data collected?
- Why do you have a separate procedure for obtaining permits for crossing a road although it is done by the electrical contractor or a design firm as part of the connection works or concurrence of the design?
- Does the Getting Electricity indicator record the de jure (the law) or de facto (the practice) situation?
- What measures were added in 2015 to capture the reliability of electricity supply?
- How are new data on outages collected?
- Why is the tariff data requested for March only?
- What kind of outages are included in SAIDI and SAIFI?
- How does an economy get a score for regulatory monitoring of outages?

How are data collected?

Data are collected from the electricity distribution utility, then completed and verified by electricity regulatory agencies and independent professionals such as electrical engineers, electrical contractors and construction companies. The electricity distribution utility surveyed is the one serving the area (or areas) where warehouses are located. If there is a choice of distribution utilities, the one serving the largest number of customers is selected.

Why do you have a separate procedure for obtaining permits for crossing a road although it is done by the electrical contractor or a design firm as part of the connection works or concurrence of the design?

In some economies, respondents have stressed that the external connection works take a long time because approvals such as excavation permits have to be obtained. Also, excavation permits were identified as a major source of delays in conducting the external connection works. For this reason, by including a separate procedure on excavation permits Getting Electricity wants to illustrate the burden on the customer when the customer or the contractor has to obtain an excavation permit. Also, Getting Electricity wants to point out streamlined interactions between utility and public agencies are streamlined in the case when the utility obtains the excavation permit by recording the time and cost associated with this step but not a separate procedure.

Does the Getting Electricity indicator record the de jure (the law) or de facto (the practice) situation?

Both. Every procedure required by law or necessary in practice is included, whether it must be completed by the customer, their contractor or a third party on their behalf.

What measures were added in 2015 to capture the reliability of electricity supply?

To offer a more complete view of the electricity sector, Doing Business broadened the scope of the Getting Electricity indicator in 2015 to include two new measures: the reliability of supply and transparency of tariffs index and the price of electricity. The reliability of supply and transparency of tariffs index encompasses quantitative data on the duration and frequency of power outages as well as qualitative information on the mechanisms put in place by the utility for reporting power outages and restoring power supply; the reporting relationship between the utility and the regulator for power outages; the transparency and accessibility of tariffs; and whether the utility faces a financial deterrent aimed at limiting outages (such as a requirement to compensate customers or pay fines when outages exceed a certain cap). The price of electricity although collected for all economies, is not included in the aggregate distance to frontier score and ranking on the ease of Doing Business.

How are new data on outages collected?

Collecting data on outages can be challenging. These measures are often recorded by utility companies, and the availability and quality of the data depend on the utilities’ ability to collect the information. Cross-checking utility’s input is possible due to the latest Enterprise Surveys data, utility performance reports, and input from national regulators. Private sector is another useful local source of information regarding personal experiences of power outages in the city.

Why is the tariff data requested for March only?

Doing Business looks to collect the most up-to-date information during each data collection cycle. Since data is typically collected for the period ranging from June to May, the month of March is realistically the last month for which the team can obtain quality information. Furthermore, in some economies, especially those with distinct seasons, electricity prices may vary depending on the season and can be considerably higher during winter or summer. In order not to penalize these economies, the month of March was chosen as a compromise.

What outages are included in SAIDI and SAIFI?

All planned interruptions are included. For unplanned outages, the outage is deemed to have started from the time at which the utility was made aware of the interruption, either by phone or a system used. An outage is an event of interrupted power supply affecting more than one customer. Load-shedding is also included. Momentary power interruptions, which are commonly defined as outages lasting less than five minutes, are typically not included in the calculations of the SAIDI and SAIFI indexes. However, if the minimum outage time to compute SAIDI/SAIFI is over 5 minutes, economies are not eligible to score on the reliability of supply and transparency of tariff index.

How does an economy get a score for regulatory monitoring of outages?

An economy scores a point on the measure of regulatory monitoring of outages if an independent regulatory body, that is a separate entity from the utility, monitors data about power outages, either through real-time monitoring or through periodic reviews.