Doing Business - Infrastructure indicator

Getting access to electricity

I. Purpose
The purpose of this questionnaire is to draw up a procedure list on getting an electricity connection with Palau Public Utilities Corporation.
II. Assumptions
1 Assumptions about the warehouse (commercial building):
1.2 Is located in Koror.
1.3 Has chosen a location within the official limits of the city where other warehouses locate (non-residential area).
Is not located in a special economic or investment zone, i.e. the electricity connection is not subject to subsidization or a faster service under a
1.4 special investment promotion regime.

1.5 If several options are available in terms of location, we assume that our warehouse chooses the location where electricity is most easily available.
Has road access. Works involve road crossing (excavation, overhead lines, etc.), but they are all carried out in a public land, i.e. there is
1.6 no crossing into other people's private property.
1.7 There are no physical constraints in the area where the warehouse is located. For example the property is not near a railway.
1.8 Is used for storage of refrigerated goods.
Is a new construction (i.e., there was no previous construction on the piece of land where it is located). It is being connected to electricity for the
1.9 first time.
Has 2 stories, both above ground, with a total surface of approximately 1,300.6 m2 (14,000 ft2). The plot of land on which it is built is 929 m2
1.10 (10,000 ft2).
2 Assumptions about the power connection:

2.1 Is a permanent connection.

3-phase, 4-wire Y, 140 kVA (subscribed capacity) (Note: For countries where the voltage is 120/208 V, this means the current would be around
2.2 400 Ampere. For a voltage of 220/380 V, the current would be almost 200 Ampere).
2.3 Maximum demand is 128 kW.

Low-voltage (LV) connection is 150 meters long (unless a distribution transformer is installed on the client’s property, in which case LV connection
2.4 length=0). We assume either overhead or underground connection, whatever is more common in the area in question.
If need be, please assume that medium-voltage connection (from HV side of distribution transformer to medium-voltage network) is also 150
2.5 meters long.
2.6 We assume the length of any connection (or part thereof) in the customer’s private domain to be negligible.

2.7 Connection involves installation of only one electricity meter.

2.8 The monthly electricity consumption would be 0.07GWh (Gigawatt-hour)
The internal wiring is already done till, and including, the customer’s service panel/switchboard, and the meter base (in the cases where the meter
2.9 is connected to the LV side and is located inside or right outside the customer’s warehouse).
3 Definitions
3.1 Time is measured in calendar days.
A procedure is an interaction of the client or their representatives (e.g. electrician, hired electrical contractor/firm) with external parties, including
3.2 the utility, government agencies, inspectors, and notaries.

Costs are those for the external connection works only and exclude VAT. Costs such as for the internal wiring of the warehouse (until and
3.3 including the panel/switchboard) are not recorded. In all cases the cost excludes bribes.

External works are those conducted between the utility’s network and the warehouse entry. Works involving wiring the inside of the warehouse
until, and including, the customer’s panel/switchboard and the meter base (where applicable), are considered the customer’s responsibility and
3.4 are not recorded.
Questions Answers
Qualifications of electricians

Do your country's electrical standards prescribe a minimum PPUC does not prescribe a minimum educational background for
educational back-ground for electricians who are allowed to electricians who are allowed to carry out internal wiring
carry out internal wiring installations for a case like the one installations as long as the electrical installation conforms with the
4.1 assumed here (140 kVA)? If so, please provide details: NEC and PPUC service regulations.

In addition to these minimum standards, are electricians that

carry out internal wiring installations subject to additional
requirements, such as:
a) the electrician has to show a number of years of work none
experience; please
b) the electrician indicate
has number ofwith
to be registered minimum years of work
the utility none
experience.
c) the electrician has to be registered with an outside agency;
please specify the agency.
none
d) any other? If so, please describe
 Is the application process for obtaining an electricity connection
usually handled by the same electrician who does the internal no, the buliding or facility owner is the one who usually applies for electrical
4.2 wiring? If no, please explain. connection
Questions Answers
III. General questions
5 Electricity connection

5.1 Please indicate the most likely location in Koror for our warehouse
considering our assumptions.

5.2 In the area in question, could an additional load of 140kVA easily

be accomodated via a simple hook-up connection?

If not, what would be the most common arrangement for a 140

kVA load? Please specify the type of work involved (connection to
5.3 a central transformer, construction of a new substation, installation
of a private distribution transformer, etc.) and kindly provide us
with estimates for the time and cost associated with these
works.

If several options are equally often used, please specify the type of
5.4 work done as well as estimates for the time and cost associated
with each option.
6 Distribution utility
Is PPUC the only one in charge of the actual connections in the
6.1 area mentioned?
6.2 Is PPUC also a provider of electricity?
a) yes
b) no
If yes, is PPUC the only provider of electricity in the area
6.3 mentioned?

If yes (5.3a)), could you please explain the process, the time and
costs of getting a supply contract with your utility? Also, at what
point in the process of getting an electricity connection would the
6.4 customer apply for the energy supply contract with your utility?
IV. Clearances needed to apply for electricity with utility
We assume road crossing in public domain. In this case, does
the customer have to obtain an excavation permit or a right-of-way
7 clearance?
a) No, the utility, not the customer obtains the excavation
permit/right of way. Please explain:
a.1) which agency it is obtained from.
a.2) how it affects connection times and cost for the customer.
b. Yes, the customer or his representative obtains the excavation
permit. Please explain:
b.1) which agency it is obtained from.
b.2) at what stage of the procedure list the customer would be
required to obtain the permit.

b.3) how long it takes to obtain it.

b.4) and how much it costs.
c. No, no excavation permit needs to be obtained by either the
customer or the utility.
Please specify any other authorization that the customer would
have to obtain specifically for the electricity connection (other than
a building permit).
8
V. Application procedure with utility
9 Does one have to attach documents to the application?
a) yes yes
b) no
10 If yes:
a) please specify those documents
b) does any of these documents need notarization?
 Does the customer have to include any particular type of
document to help the utility identify the address of the warehouse?
10.1 (Relevant in countries with weak addressing systems)
11 What are the costs associated with the application?
Does the applicant have to await an estimate for the connection
12 fees?
a) yes yes
b) no
If yes, how many calendar days does it take in practice after the
12.1 application is submitted to obtain the estimate? 2 to 3 days
Is there any legal time limit associated with this quotation time (i.e.
12.2 from application till preparation of estimate)?
13 Is the connection contract signed upon payment of the estimate?
13.1 After signature of the contract:
a) how many calendar days do you have to wait until external
works start?
b) is any other step necessary before external works can start?
14 External Inspection
Is an external site inspection necessary in preparation of an
14.1 estimate for the connection fees?
a) yes
b) no
c) other (e.g., preferred to determine location of substation)
14.2 If yes:
a) how many calendar days does one have to wait for an
inspection to happen after the application has been submitted?
b) is someone from the applicant's party usually present for the
inspection?
14.3 If no:
a) is there an external inspection at another time during the
process? Please specify details.
VI. Procedures related to external works

Is any external party other than the utility in charge of designing

the details of the external connection works (such as a registered
15 electrical engineer designs the substation)? Please give details.

16 Who is in charge of the physical works (not the final connection)?

a) only the utility

b) only an outside agency. Please provide examples and contacts.

c) either a) or b), customer can choose. Please provide examples
and contacts.
d) other
17 How many calendar days do (external) connection works take?
a) if the material is available.
b) if the material is not available.
18 Is all material available more than 50% of the time?
a) yes
b) no. Please specify the material that is not available (regardless
if provided by utility or not).
Does the customer have to buy any material (for the external
19 connection)?
a) yes
b) no
19.1 If yes:
a) what material would the customer have to purchase?
b) where could they buy it?
c) how much does it cost?
d) how many calendar days does it take to obtain it?
20 Inspection of internal wiring
Please choose the option that best describes the safety
20.1 requirements regime in your country:
 a. An inspection of the internal wiring is required, and is conducted
by the utility or another agency. Please specify by whom:

b. The electrician who did the internal wiring submits a signed

notification to the utility upon completion in which they guarantee it
has been carried out according to the regulations.
c. A more specialized electrician is hired in addition to the one who
did the internal wiring and he/she will issue a certificate of
compliance to the customer.
d. No safety requirements regarding the internal wiring exist in your
country.
e. Other. Please explain.
When in the process is the quality of the internal wiring installation
20.2 usually checked?
Kindly also explain the exact technical nature of the inspection.
20.3 What exactly is inspected?
20.4 How much does the inspection cost?
VII. Final connection
21 Meter installation
a) does the meter get installed at the same time as when the
connection is done?
a.1) yes
a.2) no (e.g., a contract with one of many providers is necessary
before meter is installed). Please explain.
b) which agency installs the meter? If it is the utility, by the same
department that is doing the external connection works?
Does electricity start flowing from the moment the connection is
22 done?
a) yes
b) no. Please explain.

Is there a legal time limit for the final connection time (from
23 payment of quotation until electricity finally flows)? Please specify.
IX. Costs
If the cost schedules are available online please reference them
24 here. n/a
(Please state all costs net of Value Added Taxes)
a Application Fee none
b Connection Fee
Based on inventory/labor/transport cost plus markup at 5% plus an installation
a) how is it calculated? fee of $50.
b) what services does it cover? Installation materials and labor
c) when is ite due? Payment before installation
d) is it refundable? No
Labor cost, if separate (such as for laying cables or excavation
works) - Please state total estimate cost and unit cost (e.g.
c cost/hour). See above
d Stamp duty ??
e Meter installation cost Same as connection fee
Cost for materials that are separate from connection fee and that
the applicant is required to buy him/herself either from utility or
outside agency (such as for electricity meter, cables, circuit
f breakers, transformer, etc.) See connectionn fee
g Taxes other than VAT. Please state what kind of taxes None
Other (e.g. transportation cost, general infrastructure contribution
h fee) Transportation costs are included in the connection fee above

Varies depending on distance from nearest power pole. PPUC grants credits
of $1,800 (residential) and $400 (commercial) to customers whose new
i Total costs: installation is within 300 feet.

j Please answer question j. only if there is a security deposit.

 A calculation spreadsheet was designed by Engineering that requires some
input by Customer Service of appliances/tools used at the site. The
spreadsheet automatically calculates total wattage, converted to kWh/month
and applied at the current electric rates. SD is a minimum of $200 or the
j.1 How is the security deposit computed for a case like ours? engineering estimate times two (two months usage).
j.2 How can the security deposit be settled?
a) in cash or check only Payment by cash/check or credit card
b) with a bank guarantee. Please specify the fee charged and
indicate if it is annual or a one-time fee. n/a
c) with a bond. Please specify the fee charged and indicate if it is
annual or a one-time fee. n/a
Please indicate when (if at all) the security deposit is returned and SD is refunded after 1 year if account maintained good standing.
j.3 the interest rate with which it is returned. There is no interest on SD.
X. Important additional questions
Would PPUC recommend a customer to buy a back-up generator
25 for the area in which we intend to build?
Are the connection fees (and not the tariffs/ kWh) regulated by any Connection fees are part of PPUC's electric tariff schedule. Promulgation of
26 law(s)? If so, which one(s)? such follows steps itemized in RPPL 4-13 (PPUC's Creation Act).
Is there any meter allowance, i.e., a maximum distance under
which the connection is done either for free or at a reduced fee (for Varies depending on distance from nearest power pole. PPUC grants credits
example, layout of cables for 50 meters costs nothing, but beyond of $1,800 (residential) and $400 (commercial) to customers whose new
27 that, an extra fee is charged per meter)? installation is within 300 feet.