NOTES TO THE ANNUAL FINANCIAL STATEMENTS – NOTE 15

    2015
R’000		       2014
R’000		  
15. PROVISIONS            
  Unredeemed electricity provision            
  Opening balance 17 504       19 029  
  Additions 687 421       617 853  
  Used during the year (686 051)       (619 378)  
    18 874       17 504  
  Less: Amounts included in current portion of provisions (18 874)       (17 504)  
    —       —  
  The unredeemed electricity provision raised represents the value of electricity vouchers sold and unredeemed as at year-end, payable by the Group to the municipalities on redemption by the end customer.            
  Redemption is dependent on activation by customers. This is expected to occur within the first quarter of the following financial year.            
  Onerous contracts            
  Opening balance 6 985       —  
  Acquisition of subsidiary —       7 406  
  Additions 3 621       —  
  Used during the year (6 647)       (421)  
  Reversed (1 342)       —  
    2 617       6 985  
  Less: Amounts included in current portion of provisions (2 617)       (6 273)  
    —       712  
 

The onerous contracts relate to line subscriptions for which the Group is contracted to incur unavoidable charges that are expected to exceed the related economic benefits to be received. A provision is raised due to the uncertainty associated with the amount of net outflow for each subscription.

The provision will be used over the period of each subscription which in no case exceeds 12 months.

NOTES TO THE ANNUAL FINANCIAL STATEMENTS – NOTE 15