Sark’s Seigneur has criticised the two new electricity charges he and other residents face paying amid the ongoing dispute over the future ownership of the island’s power provider.
Sark Electricity Limited this week announced a 40p per unit ‘legal levy’ will be added to bills from 1 September.
The island’s Electricity Price Commissioner said in return that he would investigate whether that charge is reasonable, and SEL’s owner immediately hit back with an additional 20p per unit charge, effective from 1 September, to fund a challenge against the EPC’s investigation.
The combined 60p per unit charges coming in on Monday will take Sark’s electricity price from 49 p/kwh to 113.6 p/kwh – believed to be one of the most expensive in the world.
The planned compulsory purchase of SEL by Chief Pleas, to take the island’s only electricity provider out of private ownership for the first time in its history, is the catalyst behind the new charges.
SEL’s owner does not want to sell to Chief Pleas, but has said he is happy to sell it on privately.
However, the Seigneur has said the sudden levies being imposed on Sark residents and businesses “crystallises the reason for the compulsory purchase”.
“It’s ludicrous!,” said Major Christopher Beaumont.
“Levying charges that have nothing to do with the supply of the product is fanciful. It’s so fanciful that I don’t think the demand can be taken seriously. The second ‘legal levy’ anticipates the first ‘legal levy’ being ruled unfair and unreasonable by the Price Commissioner. That determination hasn’t happened yet. Extorting money from your customers in this way crystallises the reason for the compulsory purchase.”
SEL’s owner, Alan Witney-Price has denied that the 60p per unit surcharges announced this week are any form of “revenge against his customers”, some of whom support the compulsory purchase of his business.
“This could not be further from the truth,” he said.
He wrote to customers that it was with “genuine regret” that he had to introduce the additional charges.
He also wrote that he still wishes to sit down and negotiate with Chief Pleas – something he says the Sark government is not willing to do.
“SEL seeks only to resolve the difficulties and we would rather sit down in a room and negotiate a resolution rather than go through Court; such an offer still stands,” wrote Mr Witney-Price.
In his letters to customers this week, Mr Witney-Price has not addressed any financial difficulties some may face as a result of their electricity bills more than doubling from Monday.
Instead he urges them to challenge the island’s politicians.
“I encourage islanders to talk with Conseillers and demand that Chief Pleas seek a mediated resolution to the matter rather than a legal bun fight that will take years to resolve and will cost residents millions,” wrote Mr Witney-Price.
Others have addressed the financial hardship that could be looming for some Sark residents when the electricity unit price shoots up to more than £1.13 next week.
The Electricity Price Commissioner has said he holds those concerns, and he encouraged affected bill payers to speak directly with SEL.
“I recognise that, on this occasion, such a price hike in September is likely to cause financial difficulty for many customers, in the absence of a price control order,” wrote Shane Lynch.
“I am not able to take any action until I have completed the statutory process and this is likely to take until the end of September at the earliest. In the meantime, I would encourage customers to discuss the matter with SEL if this is likely to cause them financial difficulty.”
The Seigneur is hoping for a swift resolution to the matter for everyone’s sakes, and he thinks the EPC will rule against Mr Witney-Price’s price hikes.
“I don’t intend to pay more than the cost of electricity I consume,” he said. “If the Price Control Order, which is coming, determines that it is fair and reasonable I’ll cough up. My money’s on the charges being ruled unfair and unreasonable.”