Electricity prices in Sark are much higher than necessary, an investigation has found.

The Electricity Prices Control Commissioner has confirmed that a price of around 53p per unit would be sufficient for Sark Electricity Limited to earn a reasonable profit.

The cost is currently 85p per unit (recently raised from 66p) - the highest known in the world - and has previously been described by the Commissioner as "neither fair nor reasonable".

In the UK, the cost of electricity is around 16p per unit.

Sark's electricity provider says legal costs incurred in negotiating with the island's electricity regulator has led to major losses. It says the only way to recoup them is in hiking charges.

The Commissioner is now considering moving to legal action to prevent prices from increasing.