The island’s government has been in a long-running dispute with Sark Electricity Ltd and passed laws to enable a compulsory purchase back in 2021.
Guernsey agreed to provide a loan almost a year ago and Chief Pleas voted back in June to start the compulsory purchase process, which has reached the island’s Seneschal’s Court.
The long-awaited meeting on whether to formally enter into a loan with the States of Guernsey will now take place on Wednesday 8 April.
There will also be an opportunity for conseillers to question Guernsey deputies and officials on the loan next Wednesday.
‘A loan from Guernsey represents the cheapest and most dependable option to complete the initial purchase and to ensure the safety of the grid,’ said a spokesman for the island’s Policy & Finance Committee.
‘A commercial loan, if it were even obtainable, would be significantly more expensive, and in practice it is highly unlikely that Sark could secure one at all, given the absence of assets that a lender would require as collateral.’
Chief Pleas will also consider at the meeting whether to establish a limited company, with Chief Pleas as the sole shareholder, to operate the purchased assets of SEL.
A transfer to a community ownership structure would then hopefully take place within 18 months of purchase.
Papers on both proposals are due to be published today.
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