Regulation of prices set to take effect at the month's end
In a significant development for the residents and businesses of Sark, the Electricity Price Control Commissioner (Mr. Lynch) has announced that a price control order will be brought in from the end of this month.
The decision comes after Mr. Lynch completed his investigation and considered all material factors, including the recent electricity price increases in Sark. The price control order is intended to revert electricity prices in Sark back to around 53p per unit, effective from midnight on 30 September.
However, it's important to note that Mr. Lynch cannot immediately force the reversal of the charges due to a statutory process. The person likely to set the maximum price that Sark Electricity Limited (SEL) can charge its customers in October is typically the head of the regulatory authority or the relevant government official responsible for energy pricing.
The price control order will set a maximum price that SEL can charge its customers, making it a crucial step towards addressing the concerns of Sark's residents and businesses. As of now, electricity in Sark is costing more than £1.13 per unit, effective from 1 September, a significant increase from the around 50p per unit earlier this year.
The increase in prices has been a subject of contention, with SEL's owners still challenging its compulsory purchase by Chief Pleas. SEL imposed a legal levy of 40p per unit in August to cover fees incurred in challenging the compulsory purchase, and announced an additional 20p per unit levy to challenge the findings of the EPC.
The EPC's preliminary inquiries found that the charges were "neither fair nor reasonable", a sentiment echoed by Seigneur, who branded the charges as "ludicrous". As of yet, Alan Witney-Price, the owner of Witney-Price (the most recent owner of SEL since March 2020), has not publicly commented on the matter.
Consultation with SEL is necessary before the price control order can be made. Mr. Lynch will consult SEL further in a forthcoming consultation on a price control order. The details of the price control order are not yet known, but it is expected to bring much-needed relief to the residents and businesses of Sark.
It's worth noting that SEL is the only electricity provider in Sark, having always been privately owned. The news of the impending price control order has been welcomed by many in Sark, who are hopeful that it will bring stability and affordability to their electricity bills.
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