Chief Pleas discussed drafts of compulsory purchase legislation at an extraordinary meeting on Wednesday.
The island’s Policy & Finance Committee claimed that compulsory purchase negotiations and legislation were the only option following five futile attempts to mediate and negotiate a voluntary purchase agreement.
However, SEL responded last night ‘resolutely denying’ claims of communication issues.
‘We have been in constant communication with the P&F Committee, conseillers, and Government House. Our constant request has been that a group of mutually-acceptable conseillers oversee the negotiations on Sark’s behalf,’ Alan Witney-Price, owner of SEL, said in an open letter.
‘SEL’s position has been and remains that those negotiations must be undertaken in good faith if they are to succeed without costly subsequent legislation.
‘After years of attrition, P&F are simply not viewed by SEL as trustworthy negotiating partners.’
In a report, P&F chairman John Guille stated that Mr Witney-Price was contacted for negotiations and mediation by P&F five times between July and October.
However, the committee reported SEL had not accepted offers to communicate, and it had not been possible to progress with voluntary purchase negotiations.
Following Chief Pleas resolutions from June, P&F drafted a Projet de Loi for the compulsory purchase of the utility. The draft was unanimously supported by conseillers on Wednesday.
‘Negotiation of an acquisition by consent remains the preferred way to progress this matter, with acquisition by compulsory purchase being a last resort,’ said Conseiller Guille, in the report.
‘However, the risk that the supply of electricity to residents may cease, or is at significant risk of being discontinued, remains.
‘If ownership cannot be acquired by the consent of each party, the committee considers it proportionate and necessary to acquire the assets of SEL through compulsory purchase to ensure continuity of electricity supply to islanders on a stable and predictable basis.’
SEL has called upon P&F to release both sides of correspondence for scrutiny.
The company stated the difficulties between itself and the government was a product of ‘P&F’s policy that SEL operate at a rolling loss’.
The history between SEL and Sark’s Chief Pleas goes back years. Three years ago, the previous manager of SEL threatened to shut off power supply to the island after an independent commissioner ruled islanders were paying too much for the utility and ordered SEL to lower tariffs.
No threats have since been made on either side to cut the power supply to Sark.
However, the Bailiwick’s Civil Contingencies Authority has been briefed on the situation, and Sark’s government said it would act in tandem with the CCA to limit any disruptions if power supply issues arise.
‘The community in Sark can be assured that, alongside the compulsory purchase legislation, Chief Pleas also has robust contingency plans in place should there be an interruption in the electricity supply.
‘These have been developed further following the threat of the cessation of supply in the winter of 2018 and can be initiated at short notice if necessary,’ said Conseiller Guille.
He added that P&F was looking to hold a single issue meeting on 15 December to discuss and vote on propositions related to the compulsory purchase legislation. Options for financing are being discussed.
A copy of the draft compulsory purchase legislation was sent to SEL on the 5 November with a response time of 28 days.
In conjunction with the law team, P&F will consider responses during the following seven days with the intention to return to Chief Pleas at the earliest opportunity after that time.
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