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Later on nurser has approved Johannesburg city powers seven percent increase from the 15.4 percent increase first requested by city power to find out how the new electricity tariffs will impact customers we're joined in the studio by Hotel guru who is City powers managing director sit delicate have you welcome to morning live morning and yin and to the viewers at home I mean we've basically got residents who already feel that they're paying far too much for electricity and what brought on the decision to further increase these electricity tariffs now by seven percent thanks Leon photo opportunity I think first let me just address the issue of the 15.4 percent increase initially with applied for seven percent to nelson not the 15.4 as reported, so I think that's that's the first point really with this application you wanted to address about five issues that we have been talking about within the business I think the first one which is obvious is to pass through the father Jesus cost from ESCEM so as Concord about eight percent increase and that had an impact of about 7.3 percent to the ministry qualities, so we then had to pass through the cost obvious to the customers as you know which contributes about seventy percent of the total cost of the organization, so that's a first issue the second one we wanted to make sure that we address the issue of cross subsidization we've been talking about this that we want to make sure that business come to join inspector she's do business within join us back so as a result we actually put forth an application for about 3.5 percent for business what we wanted to make sure that we address the issue of cross subsidization, so that's a secondary area, but the third one was also to look at making sure that you do away with the IPT that is reviewed every six months we wanted to review it every month so that customers get a benefit of a watch-out if every Mondays they buy electricity, so that was there another dead issue, but the fourth one was then to address the structural changes or issues that we had on the term of use tariff and that's where the 15.4 percent comes from where we were saying that let's look at the fixed versus variable costs and then apply for a 15.4 percent tariff increase yeah all right now I suppose the question that each mask is where customers informed that the tariffs will be reviewed before the increase was made he's in March we actually went through an extensive outreach program as part of the integrated development plan the IDPs we call it within the city where we're basically soliciting input from there you know the citizens of Johnny's back we basically told them that will be going for the application of about seven percent to NASA and these are they you know the customers were segmented and therefore explain also the nitty-gritty behind the tariff application, so we allowed them to then obviously give input into that and then finally in April late April we then made a seven percent...
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