Sark Electricity Limited to 'shortly cease trading'

Sark Electricity Ltd has announced it will 'shortly cease trading'.

The company - which is the island's sole provider of electricity - says it is facing financial difficulties, which the company's Managing Director blames on a Price Control Order issued by the Electricity Commissioner.

Alan Witney-Price (formerly known as Alan Jackson), who bought the company in 2020, says changes to the order did not allow the company to cover the costs of operation and make a profit.

However, the island's Electricity Commissioner, Anthony White, argues that, from his analysis, the company would have been profitable in 2020 and that a "similar pattern is emerging" for 2021.

He argues it would not be fair for customers to "protect the company from consequences of, in [his own] view, ill-judged actions of its management" which he says have led to more islanders buying their own generators and the loss of sales to 19 properties in the island.

Mr White also argues that customers should not have to bear the cost of 'substantial' legal costs incurred by the company. He says he remains open to having discussions with representatives from the company about decisions he has taken while in his role.

An emergency meeting of the Chief Pleas is taking place, though it is understood that plans are in place if the company does close.

The current cost of electricity will remain at 53p/kWh for July, but may be adjusted when further information becomes available.