Select a region
Sark's government is to consider nationalising its beleaguered energy supplier after a series of price hikes, and an independent report that revealed "serious safety concerns" about the ageing network.
A compulsory purchase letter for Sark Electricity Limited has been drafted by the Law Officers of the Crown and will be considered by Chief Pleas at their next meeting on 17 November.
Sark's Policy and Finance Committee argues that, if the island cannot purchase Sark Electricity by consent, it would have no choice but to forced a sale of the company to protect islanders' supply of electricity.
The Committee said its original intention was to have the business valued and then to acquire it by negotiation but that it had been unable to have constructive discussions with the Managing Director of Sark Electricity, Alan Witney-Price.
Pictured: Next week Chief Pleas will consider a proposal which could lead to the compulsory purchase of Sark Electricity Ltd.
“On 13 July 2021, the Policy and Finance Committee wrote to the Managing Director of Sark Electricity Limited (SEL) and Sark Electricity Holdings Limited (SEHL), Mr Witney-Price, seeking to make arrangements to commence mediation on the parameters for negotiations for an acquisition by consent of SEL/SEHL by Chief Pleas,” said Conseiller John Guille, Chair of the Policy and Finance Committee.
“The Committee wrote again on 3 August, 1 September and 15 September. To date, Mr Witney-Price has not accepted the offers to enter into mediation and it has not been possible to progress this matter.”
The Committee said it had also written to Mr Witney-Price's lawyers but received no reply.
Pictured: Sark Electricity Ltd. threatened to stop trading earlier this year.
The draft legislation on compulsory purchase has been published alongside the independent report on the island's electricity network.
If Chief Pleas agrees to the proposal to legislate for compulsory purchase, they will first need to establish the value of the business and find the money to buy it.
“This draft legislation relates specifically to the purchase of SEL/SEHL or its other relevant assets related to the supply of electricity in Sark,” said Mr Guille.
“It has no wider application to any other assets or for any other purposes. If a purchase is negotiated then the capital funding required will need to be raised through negotiations on lending and investment either with the States of Guernsey or through commercial borrowing, possibly by private equity investment.”
The island is being assured that robust contingency plans are in place to protect the island's supply of electricity, although no details have been published about these plans.
"Serious safety concerns" raised about electricity in Sark
No cap on electricity prices for Sark residents this winter
Sark power struggle rears its head again
Express invited Mr Witney-Price to comment but received no reply.
Comments
Comments on this story express the views of the commentator only, not Bailiwick Publishing. We are unable to guarantee the accuracy of any of those comments.