Legal levy to be added to Sark Electricity bills

The company says the legal levy would fund its defence against Chief Pleas' move to seize assets

All electricity customers in Sark will have to start paying a legal levy on their bills from Monday 1 September.

Sark Electricity Limited (SEL) said an additional 40p per unit charge was being introduced "until further notice" to cover its defence against Chief Pleas' move to seize its assets.

Sark's government was asked to approve starting the process of the compulsory purchase of Sark Electricity in June.

Managing Director Alan Witney-Price said the levy money would not be held by the company and any funds left at the end of legal proceedings would be returned to customers. The Chief Pleas said the Electricity Price Control Commissioner determined if prices were "fair and reasonable".

In a letter to customers, SEL said: "The company has done everything that it could to avoid increasing the cost of electricity at this time.

"However, it must fund its defence against Chief Pleas move to seize its assets against its will.

"Seizing the company's assets will reduce its value significantly and the company has a right to defend itself against this assault, and it will do so."

A spokesperson for Chief Pleas said it was down to the Electricity Price Control Commissioner (EPCC) after investigation to determine if the prices charged were "fair and reasonable".

"If the Electricity Price Control Commissioner determines the prices are not fair and reasonable, he has the power to introduce a price control order," it said.

Shane Lynch, EPCC, said he had not received "any justification for this increase".

He said: "I now intend to ramp-up this investigation in light of this material increase in prices.

"Following completion of this investigation, I will determine if this increased price is fair and reasonable.

"If I determine that it is not fair and reasonable, I can then make a new price control order."