Electricitiy tariffs hike
Electricity tariffs will go up by 3.3% for Jan to Mar 2011. Data reported in the Today paper shows that there was a 5.4% hike for Jan to Mar 2010, 3% for Apr to Jun, 2.42% for Jul to Sep, a fall of 3.3% for Oct to Dec resulting in a total hike of 7.5% for year 2010. It was also reported that the decrease of 3.3% was due to oil price falling from $102.35 to $95.41 in the third quarter. Since then oil prices have been hovering around $90 or below. Oil price for the last few days maintained at $90 but not exceeding $92. This is still below the $95.41 high in the third quarter. If oil price is holding below the $95.41 mark, why is there a need to raise it by 3.3%? Funny right? I am a little confused.