Friday, May 03, 2024

Djibouti - Economic Profile

Article Index

Getting electricity

Procedures, time and cost to get connected to the electrical grid, the reliability of the electricity supply and the transparency of tariffs

This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newlyconstructed warehouse. Additionally, the reliability of supply and transparency of tari s index measures reliability of supply,transparency of tari s and the price of electricity. The most recent round of data collection for the project was completed in June2017. See the methodology for more information.

What the Indicators Measure Case Study Assumptions 
 Procedures to obtain an electricity connection (number)
  • Submitting all relevant documents and obtaining all necessary clearances and permits
  • Completing all required notifications and receiving all necessary inspections
  • Obtaining external installation works and possibly purchasing material for these works
  • Concluding any necessary supply contract and obtaining final supply

 Time required to complete each procedure (calendar days)

  • Is at least 1 calendar day
  • Each procedure starts on a separate day
  • Does not include time spent gathering information
  • Reflects the time spent in practice, with little follow-up and no prior contact with officials

 Cost required to complete each procedure (% of income per capita)

  • Official costs only, no bribes
  • Value added tax excluded

 The reliability of supply and transparency of tariffs index (0-8)

  • Duration and frequency of power outages (0–3)
  • Tools to monitor power outages (0–1)
  • Tools to restore power supply (0–1)
  • Regulatory monitoring of utilities’ performance (0–1)
  • Financial deterrents limiting outages (0–1)
  • Transparency and accessibility of tariffs (0–1)

Price of electricity (cents per kilowatt-hour)*

  • Price based on monthly bill for commercial warehouse in case study

*Note: Doing Business measures the price of electricity, but it is not included in the distance to frontier score nor the ranking on the ease of getting electricity.

 

To make the data comparable across economies, several assumptions are used.

The warehouse:
- Is owned by a local entrepreneur and is used for storage of goods.
- Is located in the economy’s largest business city. For 11 economies the data are also collected for the second largest business city.
- Is located in an area where similar warehouses are typically located and is in an area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
- Has two stories with a total surface area of approximately 1,300.6 square meters (14,000 square feet). The plot of land on which it is built is 929 square meters (10,000 square feet).

The electricity connection:
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1 kilowatt (kW).
- Has a length of 150 meters. The connection is to either the low- or medium-voltage distribution network and is either overhead or underground, whichever is more common in the area where the warehouse is located and requires works that involve the crossing of a 10-meter road (such as by excavation or overhead lines) but are all carried out on public land. There is no crossing of other owners’ private property because the warehouse has access to a road.
- Does not require work to install the internal wiring of the warehouse. This has already been completed up to and including the customer’s service
panel or switchboard and the meter base.

The monthly consumption:
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00 p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that there are no electricity cuts (assumed for simplicity reasons) and the monthly energy consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
- If multiple electricity suppliers exist, the warehouse is served by the cheapest supplier.
- Tariffs effective in March of the current year are used for calculation of the price of electricity for the warehouse. Although March has 31 days, for calculation purposes only 30 days are used.

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 Number  Procedures  Time to Complete  Associated Costs 
 1  Submit application to Electricité de Djibouti and await estimate
Agency : Electricité de Djibouti (EDD)
The application is typically submitted to Electricité de Djibouti (EDD) in person. A detailed load schedule should be attached to the application, along with a copy of the construction permit.
Once the application is lodged, an engineer from EDD will need to come on site to do a feasibility study. Following this step, the quote will be sent to the
customer.
 15 calendar days  DJF 0
 >> 2  Receive external inspection by Electricité de Djibouti
Agency : Electricité de Djibouti (EDD)
Electricité de Djibouti (EDD) inspects the site and prepares an estimate for the connection fees.
 1 calendar day  DJF 0
 3 Obtain external works from Electricité de Djibouti
Agency : Electricité de Djibouti (EDD)
After paying the connection fees, the client needs to wait for Electricité de Djibouti (EDD) to obtain all the material. And for an electricity connection for the warehouse considered in this case study, a unit substation is needed.
95 calendar days DJF 19,675,428
 4 Sign supply contract and obtain meter installation and final connection
Agency : Electricité de Djibouti (EDD)
When the external works are completed and the client has signed a supply contract, Electricité de Djibouti (EDD) inspects the internal wiring (but not in its entirety) and installs the meter.
15 calendar days DJF 604,969
       

 

>> Takes place simulatenously with the previous procedure.

 

Details – Getting Electricity in Djibouti – Measure of Quality

 

  Answer
 Reliability of supply and transparency of tariff index (0-8)  0
 Total duration and frequency of outages per customer a year (0-3)  0
 System average interruption duration index (SAIDI)  ..
 System average interruption frequency index (SAIFI)  ..
 What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI  N/A
 Mechanisms for monitoring outages (0-1)  1
 Does the distribution utility use automated tools to monitor outages?  Yes
 Mechanisms for restoring service (0-1)  1
 Does the distribution utility use automated tools to restore service?  Yes
 Regulatory monitoring (0-1)  0
 Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance onreliability of supply?  No
 Financial deterrents aimed at limiting outages (0-1)  0
 Does the utility either pay compensation to customers or face fines by the regulator (or both) if outagesexceed a certain cap?  No
 Communication of tariffs and tariff changes (0-1)  1
 Are effective tariffs available online?  Yes
 Link to the website, if available online

http://www.edd.dj/eddweb/upload/tarif_2016.pdf

 Are customers noti ed of a change in tari ahead of the billing cycle?  Yes

 

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.

If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.