The States of Alderney is calling time on Alderney Renewable Energy’s right to develop its seabed blocks for tidal energy.
The move could derail plans for an on-Island converter station and the need for FAB Link to pass over Alderney.
In a statement Policy and Finance Committee chairman James Dent said that Alderney Renewable Energy (ARE) had defaulted on payments.
They are thought to owe the regulator for lease of the seabed blocks on which the company wishes to put tidal turbines.
The sum is estimated to be somewhere between £545,000 and £1m.
The deadline is believed to expire today.
Alderney Renewable Energy’s plans to harness tidal power and sell it to the UK relies on the installation of a cross Channel electricity cable being laid across Alderney – which has caused considerable controversy.
States Member Ian Tugby said refusing to renegotiate with ARE was the biggest mistake that the new States had made to date.
He said he could understand why ARE was not paying their block fees.
They had invested “many millions of pounds” and saw that there was a good chance that they would not receive the necessary permissions for FAB Link and thus delay tidal power coming to Alderney.
“They offered to continue to pay AEL and negotiate payment for block fees,” he said.