I can quite easily imagine that the pilot had become lost if he was relying on panel avionics, and had a total electrical failure. I can also imagine that he got himself into the state that he had little self hope of finding Alterney.
However all he had to to was turn to North, South or East on his magnetic compass. He was going to hit land pretty soon. West was the only direction that he would have problems finding land! (South East virtually guarantees him land within 15 minutes if he was remotely near his planed track, even if he didn't know where he was)
It's quite likely that his non pilot wife didn't understand what he hold her, or misremembered it. She has been through an incredible ordeal, and the difference between electrical failure and engine failure might have no significance to an 80 year old woman who has been through so much.
How many non-pilots thinks the engine stops if you stall an aeroplane!
Perhaps he told her that they had an engine failure, and she remembers "electrical failure" instead, not appreciating the difference. If you read "engine" where that newspaper says "electrical" it makes a lot more sense.
The other thing to remember is that we are reading it from a newspaper, which we all know constantly reports stuff totally incorrectly.
dp