Sark Electricity is calling for a £250,000 grant from Chief Pleas, saying without it they could be forced to shut down.
The company says the financial problems stem from a legal dispute over recent regulations which aim to lower power bills in the island, which are currently some of the most expensive in Europe.
The new 52p price for electricity could result in a temporary £20,000 loss per month for the company.
Independent auditors who reviewed the company's financial affairs said that although the company can withstand the temporary loss, it cannot afford to mount the legal case to set aside the price reduction permanently.
Sark Electricity has been providing the island's power since 1947 and has never before received any assistance or subsidy from the government.