SEL had been due to be sold to Island Power, a company registered in Scotland, in early July, for a sum believed to be in the region of £2.4m.
But managing director Alan Witney-Price said that the company, representatives of which visited the islands two weeks ago, but were unable to get to Sark, had determined not to complete the agreement and finalise the sale. An original deal with Island Power collapsed in April after news broke that the States of Guernsey had agreed to loan Sark £1.5m. to purchase SEL.
Only a third of the loan was believed to be to purchase the company, with the rest set aside for updating the grid.
Mr Witney-Price said he had been advised by Island Power that Chief Pleas, which has previously discussed using compulsory purchase powers to acquire the company, had acted in ‘bad faith’ and in doing so had effectively blocked the sale. ‘This has made, for the second time, any transaction with Island Power impossible to complete,’ he said.
‘While sympathetic to the reasoning behind Island Power’s decision not to progress at this stage, I have been absolutely clear with Island Power that there will be no renegotiation of terms with them on this transaction, having already burnt eight months on their approach.’
Chief Pleas is expected to respond later this week. Island Power said it was unable to comment yesterday.
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