Sark Electricity agrees to sell – but not to Chief Pleas

The boss of the company said he was awaiting confirmation from the island’s government that the deal can go through – though it seems unclear as to whether Chief Pleas would need to get involved or grant any permission if it was not party to the deal.

The deal with Island Energy, which is based near Edinburgh, has been outlined by SEL managing director Alan Witney-Price to be in the region of £2.4m.

Marcus Saul, managing partner of Island Power, confirmed that the company had agreed in principle to acquire SEL, and was planning to visit the island next week to move the deal forwards.

‘We are confident to that the sale will go through,’ he said.

‘However, this is subject to getting Chief Pleas support for Sark Energy Unlimited [the new company name] and additional due diligence.’

It appeared that a sale to Island Power had collapsed earlier this year, at which time Chief Pleas got involved in arranging funding to take it over.

It recently agreed a £1.5m. loan with the States of Guernsey to allow it to buy the local electricity business, but only a third of the loan believed to be to purchase the company, with the rest set aside for updating the grid.

Mr Witney-Price said he then subsequently had taken three other approaches for the business.

‘The primary considerations for the sale of SEL focuses, predominantly, on what comes next for the residents and businesses on Sark,’ he said.

‘After nearly two decades of conflict under multiple owners the time has come for an approach that expressly benefits the population.’

He said the business would transfers to the new owners on Thursday 3 July.

‘This transaction with Island Power will see ownership transition to residents while ensuring a management team with the skills to deliver on a carefully selected programme of change,’ he said.

‘A change programme that meets the island’s energy needs swiftly, efficiently and at an affordable price.’

Chief Pleas was approached for comment.