Contingency planning for Sark black out.

Monday 12 November 2018

If the power does go off in Sark, Chief Pleas said it will have well developed contingency plans in place - as talks continue to try and prevent the threatened black out.

The island was warned late last week that the only electricity supplier could turn off the power at the end of November in a continuing row over enforced price cuts.

The man who owns Sark Electricity was told he had to cut prices last year and again this year - meaning Sark residents now pay 52 pence per unit. That is far higher than Guernsey's 17p per kw/h or the UK average of 14p per unit.

Sark currently pays 52p per unit

Managing Director of Sark Electricity, David Gordon-Brown acknowledged the price is high, but said that comes with living in such a small community. He said Chief Pleas meddling in the prices he has to charge to ensure the island remains switched on has now put him in the position of  having to turn off supplies within weeks.

Mr Gordon-Brown, whose family have run Sark Electricity for decades, said the price has always been high, but previously the firm ran without political interference, but  "it's got worse since Chief Pleas got involved. It's got worse since we had a fully elected parliament."

Pictured: Sark Electricity's website lays bare the extent of the problem, with the utility firm also responsible for water supplies and other infrastructure. 

In recent years the losses the company makes have escalated, with figures from October this year showing that the new lower price "forced on us by the Electricity Price Control commissioner will result in the company running at a loss in excess of £20,000 per month."

Mr Gordon-Brown said at the time his company could not withstand those losses for long, with his website also warning "nor can we afford the £250,000 estimated for the legal appeal, we have applied to the government for a £250,000 grant to fund the legal appeal."

He has been left to cover his own legal costs, while Chief Pleas confirmed that the Price Control Commissioner, who is defending the appeal lodged by Sark Electricity, is having all legal costs paid by the island's government.

Mr Gordon-Brown said the dispute between his company and Chief Pleas has now reached breaking point, with him telling the island's politicians at a meeting last week that they can have the company, but he claims "they don't want it." He said they just want to tell him what to do, and how to run the island's power supply but won't let him charge the prices he needs to make ends meet.

Sark's Policy & Finance Committee said a number of meetings have in-fact been held, but with no agreement yet.

"Those meetings unfortunately failed to find any common ground. A further meeting took place last evening (Thursday 8 November). At that meeting a proposal was put to the Committee by the Director. The proposal is complex and would have a long term effect on the island finances, and it is essential that expert professional advice is sought. Instructions to relevant professionals can only be issued when financial details of the proposal and the relevant legal documents are made available."

P&F said it remains open to further discussions with Sark Electricity, and "will examine any proposals supported by financial and legal detail, but must reserve its right to take professional advice as to the effect on the island.

Pictured: Lord Keen, who recently visited Sark.

Sark's Chief Pleas has also responded to the letter sent by the UK Minister with responsibility for the Channel Islands who appeared to be preparing to stage a political intervention in the way the island is governed.

Lord Keen, who recently visited the islands, wrote to Chief Pleas and the Lieutenant Governor outlining his concerns last month. He asked if there has been "a breakdown of good government in Sark" which could lead to international assistance being given - or forced - on the island.

Pictured top: Will the latest row over electricity prices in Sark leading to the island being left in the dark?