Sark’s government has said “it firmly believes” that the two legal levies added on to electricity unit costs this week are “unjustified”.
It has also said it is hoping for a swift resolution to the current situation, and that the planned compulsory purchase of Sark Electricity is continuing.
Guernsey’s Civil Contingencies Authority is said to be on standby to intervene if SEL starts disconnecting large numbers of customers.
Chief Pleas’ Policy & Finance Committee and the Future Energy Committee jointly issued a statement regarding the latest Sark Electricity price increases addressing these issues.
Both said they are “extremely concerned” about the 60p per unit price hike that is being applied to tariffs from Monday for an indefinite length of time.
A 40p ‘legal levy’ was announced in response to SEL’s planned challenge against the continued planning for the compulsory purchase of SEL.
Its owner said that money raised through that charge will be kept by Collas Crill to be used in his legal fight against Chief Pleas.
When the Electricity Price Commissioner announced an investigation to determine whether that price hike was “fair and reasonable”, Alan Witney Price then announced an additional 20p per unit levy will be collected to challenge the findings of the investigation.
“The Committees are extremely concerned about these developments and firmly believe that the additional levies are unjustified,” the joint statement from P&F and the Future Energy Committee said.
“Charges of this kind, which are not linked to the normal running of the business, have never been permitted under any previous Price Control Order. In response, the Electricity Price Control Commissioner has launched an urgent formal investigation into whether this new pricing is fair and reasonable; if the Commissioner concludes that the increase is not justified, a new Price Control Order may be issued to set a regulated price. It is anticipated that a draft determination will be published early next week, followed by a consultation period, with a final determination expected by the end of September 2025.”
Despite anticipating a quick resolution to the price hikes dispute, the two committees have acknowledged that some Sark residents and businesses will be left struggling as a result of their electricity tariffs more than doubling within a matter of days.
Chief Pleas also confirmed that it will take action if SEL starts cutting off large numbers of customers as a result of the looming price rises.
“We recognise that a price rise of this scale may cause financial hardship for many. Customers who anticipate difficulty paying should contact SEL in the first instance, but residents can also reach out to the Island Safeguarding Officer. The Committees are also aware of concerns about the threat of disconnection. To be clear: if SEL attempted to disconnect large numbers of residents for non-payment of unjustified bills, Chief Pleas would immediately seek the intervention of the Civil Contingencies Authority to ensure residents are protected and that no one is placed at risk.”
Regarding the plans to compulsory purchase SEL, Chief Pleas said it is undeterred by the threats against the community.
“Separately, the compulsory purchase process is underway. A valuer has been suggested to SEL.
“Our preference is to agree a joint valuer with SEL, but if agreement cannot be reached, the Policy & Finance Committee will apply to the Court for an order appointing the valuer in accordance with the statutory process. An update will be issued as soon as possible.
“The Committees remain committed to ensuring that Sark has a reliable and sustainable electricity supply, and will continue to keep residents updated as this process progresses.”