A new community electricity tariff for the Western Isles is earmarked to be launched in April.
Over the next seven months, the Comhairle will firm up plans for a joint venture with an existing licensed electricity supplier offering a special rate to local families and businesses.
Cutting household bills by around £130 a year is a "realistic target to aim for" in the short term, according to the council.
Savings should be greater in the coming years, it is hoped.
Cheaper electricity price deal on the cards for Western Isles
20 September 2015
The "white label" partnership with a commercial operator will allow the council-
In the longer term, the Comhairle intends to negotiate agreements with a raft of
community wind turbine operators and the commercial operator of the planned large
Stornoway wind farm -
A report by strategy officer, Anne Murray, said: "Discussions are now underway with a potential private sector partner.
"Initial proposals are encouraging in terms of the potential tariff offer."
However, she highlighted: "The company is relatively new to the energy market and also lacks experience on this type of project.
"Even if an agreement is reached, it will not be without risks for Hebrides Energy."
She added: "The provisional timescale for launching the Hebrides Energy community tariff is April 2016."
The council points out any wholesale electricity supplier supporting the planned energy supply company would not achieve much savings as it will bear all operational costs and risk.
In addition, it faces extra overheads in setting up in the Western Isles which would be a new geographical area for them.