Chief Pleas looks confident that its bid to buy Sark Electricity Limited will go ahead having now agreed to borrow money from Guernsey to do so.

Last night, Sark’s government agreed a package of measures including the £1.5million loan facility that the States of Guernsey agreed to last year.

If the compulsory purchase of SEL goes through the courts, the money will be spent buying the utility and its assets and any urgent remedial work that needs to be done immediately to ensure the grid’s safety.

SEL’s owner has previously warned that money won’t be anywhere near enough to do what is needed and to run the business though.

Pictured: Sark’s power station is at the top of Harbour Hill.

The package of measures approved by Chief Pleas last night included the conditions attached to the £1.5m loan offered by the States of Guernsey.

Sark has already agreed to take part in the Bailiwick Commission, and has started to reviews its tax policies, which were two of the criteria.

If Sark defaults on its repayments, Guernsey will withhold duties from alcohol and tobacco sales, that it collects on behalf of Sark, to cover the money.

The loan itself will be repaid with interest, fixed at the rate agreed when the loan is drawn.

Those conditions have been queried by some Sark Conseillers and residents who have raised concerns over the loan repayments which will be spread over the next 20 years.

sarkchiefpleas.jpg
Pictured: Sark’s government sat last night for an emergency meeting to approve the loan and other details relating to the compulsory purchase of SEL.

The compulsory purchase of SEL is currently in the hands of Sark’s Seneschal and the independent valuer she appointed.

Begbies Traynor was appointed late last year.

An update on the work to decide a value of SEL is continuing, but the matter is expected to be concluded this year.

Alan Witney-Price, the owner of SEL, remains opposed to the compulsory purchase, this week saying Sark’s residents will face “multimillion pound exposure” if Chief Pleas buys the utility.

Ahead of last night’s meeting where the loan was approved, Mr Witney-Price warned: “SEL’s message to residents is straightforward: the real cost of this pathway is not the proposed purchase price alone. Chief Pleas has chosen to pursue compulsory purchase and to resolve core issues through court processes. That route is slow, expensive, and creates material contingent liabilities for Sark’s public finances.”