Sark Electricity Limited announced two significant price increases, taking the price for a unit of electricity from 49p per unit to almost £1.14.
The major part of the price rise were ‘legal levies’ of 40p and 20p per unit, the first to offset SEL’s court costs in a fight against Chief Pleas’ compulsory purchase of the company, and the second for legal costs the company expected it would incur fighting the introduction of a new price control order that might remove the original 40p levy.
In a statement from the island’s Policy & Finance and Future Energy committees, they said they were ‘extremely concerned’ by the announcements and firmly believed that the additional levies were unjustified.
‘Charges of this kind, which are not linked to the normal running of the business, have never been permitted under any previous price control order,’ said a spokesman.
‘In response, the electricity price control commissioner has launched an urgent formal investigation into whether this new pricing is fair and reasonable.
‘If the commissioner concludes that the increase is not justified, a new price control order may be issued to set a regulated price.’
A draft price control order is anticipated to be published early next week, followed by a consultation period, with a final determination expected by the end of September.
The two committees said they were also aware of concerns about the threat of disconnection.
‘To be clear – if SEL attempted to disconnect large numbers of residents for non-payment of unjustified bills, Chief Pleas would immediately seek the intervention of the Civil Contingencies Authority to ensure residents are protected and that no one is placed at risk. We recognise that a price rise of this scale may cause financial hardship for many.’
They said islanders concerned about rising costs could contact the company or the island’s safeguarding officer.
Chief Pleas has also given an update on the compulsory purchase process. It said an independent valuer has been put forward to SEL. It is hoped that the appointment can be agreed. If not, P&F will apply to the courts to appoint a valuer.
‘We remain committed to ensuring that Sark has a reliable and sustainable electricity supply, and will continue to keep residents updated as this process progresses.’
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