An online connection system to the electricity network - Observatory of Public Sector Innovation

“Azerishiq” OJSC has created an innovative and enhanced e-service for providing electricity of up to 150 kilowatts to the existing or under-construction buildings of entrepreneurs. As a result of these reforms, entrepreneurs will be able to apply for an electricity connection through the One Window system online by visiting https://www.e-gov.az/en/login/?return=/az/services/readwidenew/3774/ website and the entrepreneur’s business will be provided with electricity within 20 days.

Innovation Summary

Innovation Overview

In the last 10 years, Azerbaijan has been improving the delivery capabilities of the Public Sector, which remains a principal factor for economic and social progress of the country. “Azerishiq” Open Joint Stock Company – the power distribution operator of Azerbaijan that executes the distribution of electricity throughout the country - carried out several reforms aimed at simplifying the connection to power grid. The objective of the reforms are to provide 100% electronic service, reduce expenses and time spent by citizens, reduce the period of time it takes from applying to connect to the grid (and the associated bureaucratic procedures), increase transparency and strengthen the fight against corruption, meet higher minimum standards, upgrade the level of professionalism and better observe ethical rules and good behaviour vis-à-vis the citizens.

Under new reforms, Azerishiq OJSC simplified the process for connecting to the electricity grid for existing or under construction entrepreneur’s facilities with a required capacity up to 150 kilowatt. According to the new reforms, the entrepreneur can now apply online to access electricity through the One Window system, by visiting https://www.e-gov.az/en/login/?return=/az/services/readwidenew/3774/. An entrepreneur who accesses the electronic application management system (EMIOS) of Azerishiq OJSC by clicking the link will be automatically transferred to the e-Government portal, and, as the system is integrated with other government agencies (State Tax Service under the Ministry of Economy , State Service for Property Issue under the Ministry of Economy, Ministry of Justice and Ministry of Internal Affairs information system, Electronic Payment System and etc.), the entrepreneur may access whatever information (taxes identification number, property registering information, ID information and etc.) related to themselves from the general database online. The uniqueness of the innovation is that there is no communication between government employee and the entrepreneur - the entrepreneur communicates only with electronic system.

At the same time, the entrepreneurs may still visit the existing “ASAN Service” centres available countrywide if they so wish, and can apply online there with the assistance of volunteers. Volunteers help entrepreneurs to get electricity through the online EMIOS system. The procedure for the entrepreneur to connect to the electrical grid through the One Window system is as follows:

Procedure 1 (10 days):
o The entrepreneur applies electronically at https://www.e-gov.az/en/login/?return=/az/services/readwidenew/3774/ or “Asan Service” centres using the One Window system. By using Geographic Information Systems (GIS) mapping technology, the Azerishiq OJSC representative identifies the nearest power center to facility and uploads an extract from the map into the Asan portal.
o The Technical Council obtains electronic approval for the route of the electrical line from the relevant entities (ministries, agencies etc.)

Procedure 2 (10 days):
o Based on detailed design documentation prepared by Azerishiq OJSC, electrical-installation works are implemented, a meter is installed and a voltage is processed;
o The entrepreneur who came to the “Asan Service” centers or applied online second time is invited to the facility;
o Technical specification, design, certificate, contract and other documents are handed over to the entrepreneur.

As a result of these innovative reforms the entrepreneur is contacted only twice: when applied online and when a voltage is processed. As a result entrepreneur’s business is provided with electricity within 20 days.
The One Window system services created by the “Azerishiq” OJSC based on principles of operability, transparency, ethical behavior, responsibility and comfort, which allows entrepreneurs get electricity quickly and provided with high quality services.

Innovation Description

What Makes Your Project Innovative?

Under theformer rules of the organisation, entrepreneurs applied several times to several Departments and were then connected to the grid after an unknown period of time. After the innovation was applied, according to defined targets, entrepreneurs are always connected to the grid within 20 days by applying online. Along with the private sector, the public sector has also benefited from innovation. The innovation allows Azerishiq OJSC to manage their own resources securely and safely, by controlling and managing entrepreneur’s grid connection process electronically and by getting real-time information about the number of customers connected to the grid, power resources, economic data etc. The other benefit is that all negative cases related to entrepreneurs rights have been eliminated. The uniqueness of the innovation is that an entrepreneur only has to communicate with the electronic system.

What is the current status of your innovation?

To meet the requirements of the 21st century and to enhance its services to a world class level, Azerishiq OJSC carried out reforms aimed at simplifying the connection of entrepreneurs's facilities to the power grid. Since implementing the innovation, Azerishiq OJSC is experiencing a growth in the number of entrepreneur’s applications, as citizens can access to governmental services easily and securely. The subsequent positive feedback of customers and statistics showed how innovation was needed, because the number of business customers connected to the grid has increased by 10 times. Considering that Azerishiq OJSC is a government owned organization and providies services to citizens, they now intend to develop this innovative project and create other projects in the future.

Innovation Development

Collaborations & Partnerships

Through cooperating with several government organizations in creating this innovation, Azerishiq OJSC were able to grow the number of citizens useing electronic services, which also helped the country (especially in rural areas) develop in a more broad social and economic sense. Again, the innovation shows that technology can help to eliminate barrier between government officials and citizens. The innovation created environment for relationship of trust to develop between government officials and citizens.

Users, Stakeholders & Beneficiaries

Users: Entrepreneurs, private sector organisations, citizens, government and business organisations who wish to benefit from innovation
Stakeholders: Government of Azerbaijan Republic, Azerishiq OJSC and other Government organisations, Entrepreneurs

Innovation Reflections

Results, Outcomes & Impacts

The number of applications from entrepreneurs for electricity was less than 300 per year until 2017. As a result of the innovation, statistics shows that this number is now growing year by year. Nowadays, Azerishiq OJSC are receiving up to 4000 applications per year from entrepreneurs to connect their facilities to the grid.
As a result of the reforms, citizens and businesses benefited from the convenience of online transactions with the Government.

Challenges and Failures

The main challenge is that in rural areas entrepreneurs prefer to use traditional way for applying to getting electricity (i.e. by visiting to “Asan Service” centres) instead of applying online. Physical visits to service centres increase the transportation costs and take up more time and resources for both citizens and government.

Conditions for Success

The main condition for success is the willingness and interest of the public and private sector to participate in the innovation project. Along with the appropriate infrastructure and financial resources needed, putting the right person in the right job is also important and this is one of the conditions for the success, especially regardubg managerial roles. In this regard, the organisation is making all efforts to ensure that the project is successful.

Replication

Based on their experience, Azership OJSC are sure that their innovation project can be replicated by other Governments or private sector. Considering the fast growth of business sectors around the world, this innovation is a good opportunity for any government or private organisation to help create favourable conditions for entrepreneurs. They are open to share and discuss the details of the project with other agencies, organisations or governments.

Lessons Learned

Innovations in government sector play a great role in the development and success of the private sector and of the country. In this regard, Azerishiq are open to any new innovative ideas related to development of private sector for implementation in our organization.

Anything Else?

Azerishiq OJSC, as a Government organisation of the Republic of Azerbaijan, were proud that their innovative project was supported by the Government in initial stage and being successfully implemented.