Tariffs for customers joining the scheme would be at least 15 per cent below the lowest prices paid for electricity and gas in the district.
South Holland District Council leader Gary Porter said: “Following a meeting this week with a smaller scale energy supplier I am pleased to announce we have been offered a great deal for the households of South Holland.
“The supplier has agreed that subject to a minimum amount of homes - as yet unspecified - they will guarantee to beat the best tariff being charged in South Holland by a minimum of 15 per cent. This would save customers, on average, about £150 a year.
“In addition to this they will put all customers on smart meters from the start of the arrangement, which is at least two years ahead of a national roll-out by the other companies.
“Smart meters will give everybody access to live, easy-to-understand information that will allow people to manage their consumption more intelligently. In areas where they have been trialled they have led to significant reductions in consumption of both gas and electricity.
“There is no requirement for people to take both gas and electricity although I believe where people have both they will want to take both.
“There is also the possibility that where people want to link this to the use of solar panels, a preferential scheme for installing charging and billing will be available.”
Already hundreds of residents have registered an interest in a new deal amid growing frustration at the high cost of fuel.
Householders are being urged to join the register with more than 770 already having expressed an interest in the deal. To register go online to www.sholland.gov.uk/doitonline/plandev/fueltariffregister.aspx , contact your ward councillor or paper copies of the register are available on request from SHDC, Council Offices, Priory Road, Spalding, Lincs PE11 2XE.