Chief Pleas has been in a long-running dispute with Sark Electricity Ltd and passed laws to enable a compulsory purchase back in 2021.
A potential sale to a third party appeared to collapse earlier this week.
‘Due to uncertainty and risks to the supply of electricity created by SEL, the committee has concluded that it is now necessary to commence compulsory purchase proceedings,’ said Policy & Finance chairman John Guille.
‘It has become essential that Chief Pleas takes control and ownership of its critical national infrastructure. We need to secure the supply of electricity to protect the welfare of islanders, protect our economy and secure our needs for the future.’
An extraordinary meeting of Chief Pleas has been called for next Wednesday at 5pm in order to debate a proposition directing P&F to bring compulsory purchase laws into force and to accept a £1.5m. loan from the States of Guernsey to fund the purchase.
If the law is enacted, SEL and the committee have 30 days to jointly appoint a valuer.
If no appointment is made within that 30-day period, either party may apply to the Court of the Seneschal for an order appointing a person as the valuer.
The policy letter that was debated by the States of Guernsey to approve the loan to Sark earlier this year valued SEL assets between £400,000 to £500,000.
SEL had been due to be sold to Scottish company Island Power, for a figure believed to be £2.4m.
SEL managing director Alan Witney-Price claimed earlier this week that this sale had collapsed due to Chief Pleas acting in ‘bad faith’, something Island Power’s managing partner Marcus Saul refuted.
‘At no point has Island Power stated that Chief Pleas has acted in “bad faith”,’ he said.
‘Any such assertion reflects a misunderstanding or misrepresentation of our position.’
Mr Witney-Price said that having now spoken to Island Power himself he hoped the sale could still progress.
‘If this is a genuine misunderstanding as it appears to be, the transaction could still go ahead,’ he said.
‘And with a company market value of £2.4m., plus any add-on for the compulsory purchase, it is clear Chief Pleas cannot afford to purchase SEL through compulsory purchase legislation anyway.’
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