Sark's Chief Pleas will be asked to launch a tender process for new electricity supply.
It's been a year since officials were instructed to negotiate the purchase of Sark Electricity, or make a compulsory purchase.
The Policy and Finance Committee now says the installation of a completely new system and infrastructure is the best option.
“Following a year of mediation, it is disappointing that a starting point for negotiations has not yet been reached.
Based on the current circumstances the Committee is firmly of the view that it needs to find an alternative model of supply that provides long term resilience. This is a fundamental concern that affects the welfare of all islanders." - Conseiller John Guille, Chair of the Policy & Finance Committee.
The relationship between the authorities and the utility company is notoriously acrimonious.
This month SEL said it would be forced to cut power to Little Sark because it wasn't permitted to bury a new cable.
Chief Pleas argues there are less disruptive alternatives.
SEL boss Alan Whitney-Price refutes claims it is blame for the risk to grid security, and calls any suggestion that the company has not sought to negotiate in good faith 'gravely incorrect'.
"This proposal from P&F is pure theatre and serves no practical purpose but to distract from the true issue here which is the state of The Coupe and P&F’s continued failure to meet its repeated commitments to SEL."
Policy and Finance says it will take a report to the States for debate and a decision 'as soon as policy in early July'.