The Public Utilities Regulatory Commission (PURC) has announced 9.73% and 6.80% increment in electricity and water tariffs respectively from January 1, 2014.

The increment according to the PURC, is to correct movements in the Automatic Adjustment Formula (AAF) variables in order to preserve the real value of tariffs approved for the utilities in October 2013.

The decision was reached Monday, at a meeting which also considered the variables that underpin the AAF.

The regulator indicated that the latest increment which spans the first quarter of the year - January 1 to March 31 - is largely driven by the movements in exchange rates, inflation and the demand variation.

More soon.