Price of electricity on Sark halved with new cap

Sark Electricity had raised its prices from 49p to £1.13p

The price of electricity per unit in Sark has more than halved after a price control order found it to be "neither fair nor reasonable".

Islanders in Sark had been charged £1.13 by Sark Electricity Limited (SEL) since 1 September, which included a legal levy to cover its defence against Chief Pleas' move to compulsory purchase the firm.

Chief of Pleas' and the Seigneur of Sark had both refused to pay the additional fees until the Office of the Sark Electricity Price Control Commissioner had announced its ruling on the matter.

Commissioner Shane Lynch enacted a price control to bring in a maximum unit price of 52p and said the cap would last for two years.

"I do not consider the costs associated with a legal challenge of a government decision to be necessary for the continued supply of electricity," he said.

Alan Witney-Price says he wants to be paid the market value of Sark Electricity Limited

Experts have described Sark as being the place were people pay the "world's highest energy prices" by experts.

Alan Witney-Price, SEL owner and managing director, said he wanted the market price of £2.4m for the company - not the £500,000 offered by Chief Pleas.

He said: "They want to pay a price that they've decided, not a price the market's decided - why is that acceptable?

"Sark thinks, for some reason, that it's a special case because they don't charge their residents the right taxes, they shouldn't have to pay the right amount for stuff.

"I'm sorry, that's not how it works."

Mr Witney-Price added that the September levies would still be charged to islanders' bills for that month.

Chief of Pleas' Policy and Finance Committee said it had applied to the court to appoint an independent valuer to decide the worth of the electricity company.

It said: "Chief Pleas is committed to bringing the assets of SEL into community ownership ensuring a safe, reliable and affordable electricity supply for our community.

"The compulsory purchase process is now underway to deliver this."

Mr Lynch said he would be hosting a public meeting at Sark Town Hall at 18:00 GMT on Thursday 2 October for islanders to share their thoughts.