4. Non-financial instruments
4.5

Provisions

Provisions are recognised when the Group has a present legal or constructive obligation as a result of past events, it is more likely than not that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made. Provisions are not recognised for future operating expenses.

Provisions are measured at the present value of the expenditures expected to be required to settle the obligation using a pre-tax rate that reflects current market assessments of the time value of money and the risks specific to the obligation.

The increase in the provision due to the passage of time is recognised as an interest expense.

  Unre- 
deemed 
electricity 
provision 
R’000 		     Other 
provisions 
R’000 		     Total 
R’000 		  
Opening balance 36 031      3 597      39 628   
Additions 478 007      45 965      523 972   
Acquisition of subsidiaries —      —      —   
Used during the year (495 271)     (43 382)     (538 653)  
Reversed —      —      —   
Closing carrying amount 18 767      6 180      24 947   

Unredeemed electricity provision

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.

The Group is not involved in any significant litigation at year-end.