A new state-owned energy firm for Scotland could cost £3.5m to set up and cost around £9m a year to run in the first year, according to reports.
More information has emerged about the proposed company that would supply household power and invest in renewable energy.
Scottish ministers are now examining options for the way forward after consultants published a report on the potential company, according to BBC Scotland.
It follows a pledge made by First Minister Nicola Sturgeon last October to set up a household energy supplier.
One of the options is for a national provider to sell electricity and gas through local councils, according to a BBC Scotland report.
The company could also provide broadband in the future.
Consultants have warned of stiff competition in the market with 42 rival companies in Scotland alone.
Half of these firm have reported a loss in their most recent accounts.
Consultants EY said Scotland’s new state-owned energy supplier could be in operation by March 2021 if Scottish ministers select their preferred model by early next year.
Ms Sturgeon earlier said the new firm would allow low income Scots to turn to a supplier only concerned with “securing the lowest price for customers”.