The owner of Sark Electricity is fighting back against an attempt to buy it.
Alan Witney-Price has written to all island residents amid efforts by Chief Pleas to buy SEL with a loan from the States of Guernsey.
He reiterated to them the plan by Sark’s Policy & Finance Committee to borrow £1.5million from Guernsey to “purchase SEL and upgrade the grid”.
Mr Witney-Price has said that the proposed valuation “fundamentally misunderstands” the true worth of Sark’s only electricity company, which he said “comes from the value of reliable, stable service delivery to the community”.
“SEL is not for sale to anyone at this price,” Mr Witney-Price confirmed.
He has warned that if Sark borrows money from Guernsey to buy SEL then the smaller island could be forced to use duties on alcohol, fuel, and tobacco as a ‘guarantee’ while the island’s tax regime could be reviewed amid concerns that could lead to further financial interference from outside.
In a letter distributed to all Sark residents ahead of a public meeting held on Tuesday evening, Mr Witney-Price said that he remains confident in his own vision for Sark’s energy future.
“We believe Sark can take control of its energy utility immediately through a less adversarial approach,” he wrote.
“We’re in talks with Island Power about rapidly transitioning SEL to community ownership in partnership with Guernsey. SEL supported Island Power’s cost-effective organic grid development proposal in both 2019 and 2022. However, Chief Pleas dismissed these options and instead pursued an ill-advised adversarial approach and a second grid at great expense. Sark taxpayers have already paid dearly for these follies, with £200,000 spent on the latest review alone. Under Chief Pleas’ latest proposal, third parties, not residents, would reap the reward and residents will be saddled with a tax and electricity burden that they simply cannot afford in our declining economy.
“Sark residents need to see an increase in their personal income, NOT an increase in their personal tax and electricity bills,” wrote Mr Witney-Price.
He explained how Island Power plans the “immediate formation of island-owned Sark Energy Unlimited” which he says has a “clear plan to deliver renewable electricity at c. 30p per kWh within 3 years without risking Sark’s independence”.
“SEL is committed to a solution that puts Sark energy users first and you are encouraged to engage with Island Power to learn more and talk to your Conseiller about swiftly and roundly rejecting the proposition agreed with Guernsey by P&F,” wrote Mr Witney-Price.
“Sark is not for sale! Tell your Conseiller’ to have this Guernsey proposition withdrawn immediately and support Island Power’ vision for Sarks energy future.
The States of Guernsey are due to debate a proposal to lend Chief Pleas to money to buy SEL at its next scheduled meeting, starting Wednesday 9 April.
Policy and Resurces will lead the debate, which includes an agreement by Chief Pleas that it will carry out a “comprehensive review of Sark’s taxation regime” in exchange for the loan.
If the States of Guernsey approve the loan, the Chief Pleas will progress it at their next meeting which is due to take place on Wednesday 30 April.
