Cost of electricity in Sark is 'neither fair nor reasonable'

The cost of electricity in Sark is unfair and unreasonable, according to an investigation.

The findings, by the Electricity Price Control Commissioner, suggest Sark Electricity would enjoy a reasonable return charging 53p per unit.

Islanders had been paying 66p per unit - the highest known electricity price in the world - but Sark Electricity Limited will raise the price to 85p per unit from today.

Sark's electricity provider says legal costs incurred in negotiating with the island's electricity regulator has led to major losses.

It says the only way to recoup them is in hiking charges.

A statement from Sark Electricity criticised the government, saying their policy on electricity had led to the increase.

The investigation into SEL's business and operations included the use of WSP, an internationally recognised engineering company, to assess the company's network and power generators on Sark.

The Commissioner's analysis took into account the cost of replacing the whole system, its age, the fixed and variable costs, and calculated a "fair and reasonable" return for SEL's shareholders.

The Electricity Commissioner will now seek representations from SEL, residents and other interested parties. He will then decide whether there is a need to make a formal determination.

The Chief Pleas worries that previous threats by the company to shut off the island's power could be followed through.

Sam Bateman, Sark's Head of Policy and Finance, says that could have potentially grave consequences.

Katie Hamon owns a shop on the island. She says that a price of 85p per unit of electricity will hit islanders hard.