Sark islanders are facing the world’s highest electricity prices, with costs recently surging to £1.13 per kWh amid a legal dispute over the compulsory purchase of the power company. This steep increase has sparked outrage among residents and businesses, highlighting the challenges of energy provision in small, isolated communities.
The small Channel Island of Sark, with a population of about 500, has long struggled with exorbitant energy costs due to its unique circumstances. As the island’s sole commercial power provider, Sark Electricity Limited (SEL) operates without economies of scale, serving a tiny customer base that cannot absorb fixed costs efficiently. The reliance on diesel generators, which require fuel to be transported by boat from Guernsey, further drives up expenses. Compounding these issues, the electrical infrastructure has been neglected for decades and is now deemed dangerous and past its design life by independent experts.
This crisis is not an isolated incident but the latest chapter in a prolonged power struggle dating back to 2010. That year, the island’s government, the Chief Pleas, first intervened in electricity pricing disputes. After six years of negotiations, a regulator was established, and in 2018, a price cap of 66p per kWh was set. However, the then-owner threatened to cut off power, leading to a tense standoff that culminated in an agreement for the government to purchase the company. The process has dragged on for years without resolution.
The current flashpoint stems from the ongoing compulsory purchase proceedings. Alan Witney-Price, who acquired SEL in 2019, has imposed a ‘legal levy’ on electricity prices to cover his court costs associated with the government’s buyout attempt. This levy caused the price per unit to more than double in the past two weeks, reaching £1.13. Witney-Price defends the increase as necessary to fund his legal battles, but it has placed an unbearable burden on the community.
The impact on daily life is severe and immediate. Local businesses are reeling from the spike in operating costs; for instance, the restaurant Time and Tide reported its electricity bill had nearly trebled, forcing it to review opening hours weekly. Residents are adapting by cutting back on energy use, with some refusing to pay the new rates outright. Former politician Tony Le Lievre is among those leading the resistance, confident that most islanders will join him in withholding payment.
In response to the crisis, the community has mobilized. Guest house owner Helen Le Poidevin organized a meeting attended by about 80 residents to discuss collective action, expressing anger and worry over the financial strain. The Electricity Prices Control Commissioner, Shane Lynch, has called the price hike ‘neither fair nor reasonable’ but cannot impose a cap until October, leaving residents in limbo. The situation is particularly dire for vulnerable populations, who risk being unable to afford basic power needs.
The Chief Pleas is pushing forward with plans to acquire SEL and modernize the energy system. They have designed a new £8.6 million renewable-based power grid aimed at achieving energy independence and reducing costs. A valuer has been appointed for the compulsory purchase, though progress is slow due to legal complexities. Conseiller Mike Locke, leading the effort, emphasized the unacceptable risks to safety and business viability, urging a swift resolution.
Experts confirm the uniqueness of Sark’s predicament. Dr. Dilip Jena, an economics lecturer at the University of Dundee, and Tom Miller of Cambridge Energy Economist both attest that these are the highest electricity prices they have encountered globally. The case underscores broader issues of energy affordability in remote areas and may inform policies for other small islands. The outcome hinges on the compulsory purchase’s success and the timely implementation of renewable solutions, with hopes that stability will soon return to Sark.