Electric tariff

A brief explanation with respect to the recent reduction in the electric tariff.

Misol has one contract with utility companies and in effect are resellers of the commodity. We have to take into account that Iberdrola read the meter one month and issue an estimated bill the next. It was agreed at the 2009 AGM that the committee had the authorisation to adjust the tariff accordingly. This year we have received several additional bills from Iberdrola stating an undercharge from the previous year, thus making it difficult to determine an accurate tariff. It was decided that the solution would be to average out the cost over a 6 month period, this we have done. It has since been published that Iberdrola intend to increase the tariff by 4.8% as from October 2010, we will average out the monthly cost over the next 6 months before making a decision with respect to the current tariff. A reminder that Iberdrola are not responsible for the maintenance, repairs and replacement of the electric on Misol, the community is which includes a replacement transformer should it be required.