The Importance Of Getting Electricity
Data from Doing Business
A firm has to go through 7 procedures in order to obtain an electricity supply and connection. These include applications and contracts with electricity utilities, clearances from other agencies and the external and final connection works. The whole process from submitting the application to installing the final connection takes 137 calendar days and costs a substantial 126.1% of income per capita. The reliability of supply and transparency of tariffs scorecard indicates that Canada has an index of 6 out of 8. Being in the top one-third range of the index implies that there is relatively high reliability of electricity supply and great transparency of tariffs. Canada currently has a ranking of 105 …show more content…
A firm must first obtain an electricity connection in order to conduct its most basic operations. Hence, having more efficient means of getting electricity allows a firm to begin running its business more quickly. This efficiency is dependent upon the number of procedures, the time taken and cost of obtaining an electricity connection. Although having an electricity connection allows the firm to get the business started, however, to ensure that the operations are sustainable in the long run, there should be little disruptions to the electricity supply. Thus, the quality of the electricity connection is measured using the index for reliability of the electricity supply and transparency of …show more content…
Without going through the formal administrative procedures to register a property, it would limit access to finance. Given the few administrative procedures and short amount of time required, it is relatively efficient to register a property in Canada. About 89% of Canada’s land is Crown Land owned by federal or provincial governments and the remaining 11% is privately owned. Foreign investors who want to set up a business and register property in Canada have full and fair access to the Canada’s legal system. Any disputes regarding property expropriation could be resolved through the mechanisms available to them by the Government of Canada. This gives rise to the high favourable index for land dispute resolution. (Protection of Property Rights, 2015)
Data from Doing Business
The ease of getting credit is determined by the quality of the credit information system and the soundness of collateral laws. The quality of the sharing of credit information is assessed through the depth of credit information index, the credit bureau coverage and the credit registry coverage. The strength of legal rights index determines the soundness of collateral laws. The economy has a score of 8 out of 10 on the depth of credit information index and a score of 9 out of 10 on the strength of legal rights index. Globally, Canada stands at 7 in the ranking of 189 economies on the ease of getting credit.
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