Chief Pleas seeks terms to buy Sark Electricity
AN EMERGENCY meeting was held in Sark this evening [Wednesday] night to discuss a coping method should the lights go off, writes Zoe Fitch.
Sark Electricity has threatened to cut all power on Friday if it cannot get a price it considers viable for its services.
‘All propositions were passed and the government is working very hard at contingency plans,’ speaker of Chief Pleas Arthur Rolfe said.
‘Negotiations are still ongoing with the company to make sure the lights stay on or, if they go off, making sure they come back on.’
Thirteen members of Chief Pleas and around 60 Sark residents attended the meeting at the Island Hall.
The minutes state that Sark remains ‘absolutely committed to finding a negotiated solution and to avoid a shutdown’.
A time-frame of three months was suggested to reach a heads of terms agreement with the intention of bringing a finalised agreed proposal for purchase of the power company back to Easter 2019 Chief Pleas.
The three propositions were:
That Chief Pleas instructs the Policy and Finance Committee to engage reporting accountants and specialist valuers to conduct due diligence on Sark Electricity Holdings Ltd and its subsidiary company and/or any other relevant person with a view to a negotiation for the acquisition of the company and/or any assets which are needed to ensure continuity of the supply of electricity to the people of Sark. Including the preparation of a current statement of affairs including the up-to-date valuation of all assets and details of all outstanding liabilities including those relating to any pension fund.
That the Policy & Finance Committee reports back to Chief Pleas at as early a date as possible but no later than the Easter Meeting 2019, with a recommendation that, following agreement with the shareholders of Sark Electricity Holdings Limited and/or any other relevant person, a purchase of the Company and/or any assets as described in Proposition one should be made by Chief Pleas.
That the Policy & Finance Committee, in due course, confirm to Chief Pleas the details of the financial arrangements necessary to enable the purchase to be completed.
Heads of terms is a non-binding document which outlines the basic terms of a tentative partnership agreement or transaction. It represents the first step on the path to a full legally binding agreement or contract and a guideline for the roles and responsibilities of the parties involved in a potential partnership before any binding documents are drawn up.
