Electricity prices in Sark set to increase by 2p

Sark's regulator had previously warned the price of power could increase to £1.50

The maximum price for electricity in Sark has increased to 56p per unit, from 54p.

The island's power regulator previously warned the price could treble if a request from Sark Electricity (SEL) to increase prices to facilitate investment in infrastructure was approved.

Some businesses on the island warned they would have to close if that was the case.

Price control commissioner Shane Lynch rejected most of the requests from SEL for extra spending, reducing the increase to 2p.

SEL has been contacted for comment.

In his summary, Mr Lynch said: "It is important to note that the above revised maximum unit price could increase further for the approval of additional capital expenditure or legal costs."

He also said: "SEL may appeal this decision to the Court of the Seneschal up until the 28 November."

In its request, SEL asked to increase prices to cover historic legal fees, cost increases driven by inflation, new kit and the cost of decommissioning the company's equipment in two year's time.

The company's managing director Alan Witney-Price argued he would need to decommission his company's equipment, as the island's government Chief Pleas plans to install its own grid.

Two companies have started work designing the island's new grid, following a vote by conseillers to spend £175,000 on the process.

Chief Pleas decided to move ahead with plans for its own power company following a number of independent reviews which found SEL's equipment was "dangerous" and needed replacing.

The last figures provided by Chief Pleas put the cost of the new grid at £8.6m, although some conseillers have warned that price could increase once the designs were completed.