The final pieces are being moved into place ahead of Chief Pleas’ compulsory purchase of Sark Electricity Limited (SEL).
The long-running attempt to put the privately owned company into community ownership is expected to move to court later this year – with the Seneschal to oversee the enforced removal of SEL from its current owner, the Witney Price Group.
Before that, Chief Pleas will be asked to approve the creation of ‘Sark Power Limited’ – an interim company that would take ownership and operation of SEL before it moves to a community-based ownership model.
Sark’s most senior politician, Conseiller John Guille said putting the ownership of Sark’s only electricity company into the hands of the community remains the ultimate goal, but to get there an interim plan is needed.
The Chair of Sark’s Policy and Finance Committee said setting up ‘Sark Power Limited’ is a step towards that long term target.
“The compulsory purchase of the electricity network will secure Sark’s energy future,” he added.
“Establishing Sark Power Limited is an important part of that process, ensuring that when the purchase takes place there is a dedicated organisation ready to operate the network, protect continuity of supply and begin addressing any urgent safety, maintenance and investment issues.
“Our long-term ambition remains a community-based ownership model, but before we can reach that point we need a practical and stable interim arrangement that allows the island to take control of the infrastructure, understand the challenges it faces, and put it on a secure footing for the future.”
The owner of SEL is understood to still oppose its compulsory purchase, and has argued in court that Chief Pleas is significantly undervaluing it.
He has not made any public comment on the situation recently.
Sark Power Limited
Chief Pleas will be asked to vote on the creation of Sark Power Limited at the next meeting, on 30 September.
If it is approved, work will start to set up the interim holding company ahead of the compulsory purchase of SEL, which is expected to move to court later this year.
A spokesperson for Chief Pleas said setting up Sark Power Ltd now would ensure that, “once the compulsory purchase process is complete, there is an entity wholly owned by Chief Pleas ready to assume responsibility for the electricity network, maintain continuity of supply and carry out essential safety works”.
Sark Power Ltd would be the “legal and operational structure through which essential services can continue uninterrupted during the transition period”.
In the long term the plan remains to move SEL into community ownership, with Sark Power Ltd proposed as the “interim operator of the electricity service”.
“The interim company would provide the stability needed to take ownership of the assets, assess the condition of the network, undertake any urgent safety and reliability works, and develop a clearer understanding of future investment requirements before any longer-term ownership arrangements are implemented”.
Chief Pleas started moves towards the compulsory purchase of SEL in 2024, with the States of Guernsey agreeing to lend the smaller island £1.5 million to do so in May 2025.
Sark’s court appointed law firm Begbies Traynor to value SEL earlier this year as part of the compulsory purchase process.
