Regulatory measures on pricing set for 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, Mr. Lynch, has announced plans to implement a price control order at the end of September, following an investigation into recent price hikes.
The consultation process with Sark Electricity Limited (SEL) must be completed before the price control order is made. SEL, the only electricity provider in Sark, has been privately owned since March 2020, most recently by Alan Witney-Price. As of yet, Mr. Witney-Price has not commented publicly on the recent developments.
The price control order, expected to take effect from midnight on 30 September, may see electricity prices revert to around 53p per unit. This would mark a decrease from the current prices, which have been around 50p per unit earlier this year and have recently increased significantly, putting Sark's power price among the highest in the world.
The recent electricity price increases have not gone unnoticed. The Seigneur, the head of the island's government, the Chief Pleas, has branded the charges as 'ludicrous'. The EPC, the body responsible for electricity supply price regulation in Sark, has also found the charges to be 'neither fair nor reasonable' in its preliminary inquiries.
In response to these findings, SEL announced a legal levy of 40p per unit in August and an additional 20p per unit levy to challenge the findings of the EPC. SEL's owners are still challenging its compulsory purchase by the Chief Pleas.
Mr. Lynch has confirmed that he will consult SEL further in a forthcoming consultation on the price control order. However, he cannot immediately force the reversal of the charges due to a statutory process.
It is worth noting that the name of the EPC leader introducing the electricity supply price regulation in Sark is not publicly specified, and the price regulation will officially come into effect on October 1, 2025.
With these levies, Sark residents and businesses electricity bills are now more than £1.13 per unit, effective from 1 September. As the implementation of the price control order approaches, the island's residents and businesses await the relief it may bring to their electricity costs.
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