Sark might force power prices down

Friday 04 October 2019

Chief Pleas are going to look at legally enforcing a far lower price for Sark Electricity to end the ongoing stand off between the island's government and only power supplier.

The island's Government discussed the situation at a meeting earlier this week, and also confirmed that negotiations between the two parties to discuss a buy-out had come to nothing because they could not agree on a valuation.

Things are now looking similar to this time last year, when Sark found itself on the edge of a crisis. 

At this latest meeting, Chief Pleas resolved to hold a consultation until the end of the month, and then get the island's Price Control Commissioner to work out whether or not to enforce a 53p per unit charge, which it has said would allow SEL to still operate in the black. 

Chief Pleas has also revealed that negotiations with the Electricity company are on going. As part of the resolution of negotiations last year, the government agreed to 'contemplate buying' SEL after a few months, but that does not appear to have happened.

Pictured: Sark is once again looking at the possibility its residents could be left wwithout power. 

Chief Pleas have now confirmed this was because David Gordon-Brown, SEL's owner, would not agree to a 'standard valuation methodology'.

So to resolve the situation, the government will  now look at instructing its law officers to draft licensing legislation to 'install a regime for discipline over generation and supply of electricity for all residents'. 

The main objectives of this legislation would be: 

• To ensure the continuity of electricity supply.
• To ensure that generation and distribution is safe and modern.
• To encourage renewables in Sark. 

Addressing the possibility of the generators being switched off, a spokesperson said: "should a situation arise as it did last November with a potential turn off threat, a contingency plan exists to ensure minimal disruption to the island residents.

"However, negotiator remains the preferred option, and, to date, no notification has been received from SEL that they have withdrawn from the current negotiations."