Just three members of Chief Pleas voted against plans to force the compulsory purchase of Sark Electricity Ltd.
Ten members of the island’s government voted in favour of a compulsory purchase law being enacted last Thursday – that means Chief Pleas can now “begin the formal process of acquiring SEL’s assets”.
Ten conseillers also voted in support of a £1.5 million loan from Guernsey to buy SEL, with 11 saying yes to allowing Sark’s Policy and Finance Committee to negotiate the terms of that loan with Guernsey’s Policy and Resources Committee.
Legally, this means that Chief Pleas must work with SEL to appoint a Valuer so a price can be agreed for Sark’s power station, relevant infrastructure, and assets.
If the two parties can’t agree to do that by 26 July, either side can then apply to the Seneschal for an Order appointing their preferred Valuer.
The dispute between SEL and Chief Pleas could continue at this point with either party able to contest the Valuer’s appointment.
Their valuation of SEL can also be challenged through the courts.
Once a value is agreed, Chief Pleas would have to pay SEL the required sum and all assets would legally transfer to Chief Pleas.
Some members of Chief Pleas are delighted they’ve started this legal journey, with the government itself describing it as a “landmark decision for Sark”.
Chief Pleas said the compulsory purchase of SEL will be “providing the opportunity for the island to take control of its energy future for the benefit of the local community”.
Conseiller John Guille, Chair of Policy & Finance, has been working on the matter for many years and agreed they’ve now reached “an absolutely crucial milestone”.
“Hopefully in the near future we will be able to begin the crucial upgrade and safety work that has been needed for so many years,” he said.
Conseiller Mike Locke, Chair of Future Energy Committee, agreed with the gravitas of this situation for Sark.
“I’m very pleased with the decision. It means we’re on the way to Sark having a safe, reliable and economic electricity supply not just for us today but for generations to come.”
SEL’s owner has been vocal in his criticism of Chief Pleas and his opposition to the compulsory purchase of his business.
Alan Witney-Price had been in negotiations with other interested parties to buy SEL but those talks fell through last month.
He’s now started his own legal proceedings against SEL to try and recoup money that he has tied up in the company through business loans.