In an announcement on Wednesday, the government's Sustainable Electricity Policy Development Team placed the blame squarely at the door of Sark Electricity.
Counseiller Hazel Fry, from the team, said that it could not reach an agreement that gave the necessary assurance that the process would not be frustrated or derailed in the future.
Sark Electricity director David Gordon-Brown denied it had caused any problems and that, if anything, it was the other way around.
