Implementation of Price Regulation Starting at the End of This Month
Sark, a small island in the English Channel, is set to see a significant change in its electricity prices. The Electricity Price Control Commissioner, Shane Lynch, has completed an investigation and will be implementing a price control order from the end of this month.
The order aims to reverse recent electricity price increases in Sark, which have put it among the highest in the world. Prior to 1 September, electricity was costing around 50p per unit in Sark earlier this year. However, due to a combined levy, the price for residents and businesses rose to more than £1.13 per unit, effective from 1 September.
The price control order is expected to revert electricity prices in Sark to around 53p per unit, effective from midnight on 30 September. The details of the order are not yet known, but it will set a maximum price that SEL, the only electricity provider in Sark, can charge its customers, which include every business and resident in Sark.
The Commissioner's preliminary inquiries found that the charges were 'neither fair nor reasonable'. In response, SEL's owner announced a legal levy of 40p per unit in August, and an additional 20p per unit levy in response to the EPC's investigation.
The Seigneur, the political leader of Sark, branded the charges as 'ludicrous'. Alan Witney-Price, the owner of Witney-Price, has yet to comment publicly on the situation.
It's important to note that SEL's owners are still challenging its compulsory purchase by Chief Pleas. Consultation with SEL is required before the price control order can be made. Mr Lynch cannot immediately force the reversal of the charges due to a statutory process.
The price control order, once implemented, may see electricity prices in Sark revert to the current fixed cost charged. However, the final outcome remains to be seen as the details of the order are yet to be disclosed. Mr Lynch will consult SEL further in a forthcoming consultation on a price control order.
The search results do not provide information on the name of the EPC Commissioner responsible for Sark or the date of their price control decision. SEL has always been privately owned, most recently by Witney-Price since March 2020.
As the situation unfolds, residents and businesses in Sark await news of a potential reduction in their electricity bills. The implementation of the price control order is a significant step towards addressing the high electricity costs in Sark and ensuring fair pricing for all.
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