Electricity Price Reduction to 44p a unit

Sark’s Electricity Price Commissioner has this week announced a reduction in the cost of electricity on the island from 53p a unit to 44p from 1st August 2023, one of the lowest prices in some years. Shane Lynch who has been in the role since November 2022 confirmed in his notice:

‘This price reduction is because of the monthly correction mechanism in the price control, which has been in place since 1st April 2023. This mechanism compares actual fuel prices and demand to what was forecast in the price control and, once a certain threshold is reached, a change to the maximum unit price is triggered. In this case, the reduction in the maximum unit price to 44 p/unit results from a fall in average fuel prices of 11%, and an increase in average demand of 4%, over the first 3 months of the price control.

The monthly connection fee will remain capped at £10/meter and the monthly standby charge for own-generators will remain capped at £5/KW of installed capacity.’

Alan Witney-Price, the Managing Director of Sark Electricity Ltd, added:

‘While lower fuel prices and increased unit sales have had a significant impact. It is primarily as a result of the constructive engagement of the new Price Commissioner, Mr Shane Lynch, that SEL is now able to focus on its operational, rather than legal, needs and this is paying huge dividends for our local customers. I am delighted to now be in a position to start delivering on my original vision for the company that I laid out when I purchased the business back in 2020. At a time when energy costs all around the globe are rising, SEL is delivering the lowest unit price for residents in decades and we are aiming lower.’