Law enables Chief Pleas to purchase Sark Electricity Limited

Previously, the island’s Policy & Finance Committee claimed that compulsory purchase negotiations and legislation were the only option, following attempts to mediate and negotiate a voluntary purchase agreement.

In a 25-minute Chief Pleas meeting on Tuesday evening, P&F chairman John Guille said he believed it was in the public’s interest to enact the compulsory purchase legislation as soon as possible to ensure a continuity of energy supply.

However, Conseiller Guille also said it was still the desire of P&F to firstly solve the issue by negotiation.

‘As we have always stated, it’s always been the wish to try to bring this to a resolution by negotiation,’ he said.

‘Obviously we won’t be coming back to the house to commence compulsory purchase until all avenues of negotiation have been exhausted.’

SEL managing director Alan Witney-Price confirmed yesterday that negotiations were under way, but he was not at liberty to discuss details.

‘From their perspective, Chief Pleas feel the compulsory purchase agreement is a necessary tool to have,’ he said.

‘Negotiations with a sword over your head is never easy, but I don’t want to sell, and I’ve been very clear about that from the beginning. Ideally, I hope I can continue to run SEL and work together with the government to solve the energy crisis in Sark.’

The history between SEL and Chief Pleas goes back years. Three years ago, the previous manager of SEL threatened to shut off the power supply to the island after an independent commissioner ruled islanders were paying too much for the utility and ordered the company to lower tariffs.

No threats have since been made on either side to cut the power supply to Sark. However, an emergency Chief Pleas meeting was called in June after SEL allegedly announced it was about to cease trading.

Mr Witney-Price said the company was not making money and that he had warned the government and the island’s electricity price commissioner of the situation for more than a year.

At the time, Chief Pleas voted to commission the draft legislation for compulsory purchase, and in November, the draft was brought to the parliament, alongside an electric safety report conducted by Electrical Infrastructure Services.

The report concluded that the island’s power grid was not fit for purpose, contains serious safety concerns, and the main generators were believed to be past their design life.

Mr Witney-Price said he wants to maintain control of SEL because he believes the solutions needed require more entrepreneurial spirit than government can provide, adding that he genuinely loves Sark and wants to solve the problem.

Although Chief Pleas has said negotiations are its preferred route forward, all conseillers present on Tuesday voted to approve the compulsory purchase legislation as a way forward if necessary.

Conseiller Guille allayed concerns about finances for any hypothetical purchase of SEL.

‘Sark has been assured of sufficient resources from the States of Guernsey to cover us for the purchase. But the best option for financing depends on how much we’re borrowing,’ he said. He explained that there are currently too many unknowns to have a detailed discussion about financial options.