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Electricity costs in Tasmania

Tasmania has a unique electricity market shaped by its heavy reliance on hydroelectric generation. The average Tasmanian household pays between $1,700 and $2,300 per year for electricity. While Tasmania's generation costs are relatively low thanks to hydro power, network costs are high because of the state's dispersed population and the expense of maintaining infrastructure across rugged terrain. Winter heating is a significant cost driver — Tasmania's cold climate means many households rely on electric heating, pushing winter bills well above summer levels.

Price regulation in Tasmania

The Default Market Offer (DMO) set by the Australian Energy Regulator (AER) applies in Tasmania as part of the National Electricity Market. However, Tasmania's retail electricity market is still relatively limited compared to mainland states. The Tasmanian Economic Regulator also plays a role in overseeing pricing for standing offer customers. Regulated prices are reviewed annually, and the DMO provides a cap on what can be charged for standing offers. Because retail competition is more limited in Tasmania, the gap between standing offers and the best market offers tends to be narrower than in states like Victoria or NSW.

Retailers in Tasmania

Aurora Energy is the dominant electricity retailer in Tasmania and serves the vast majority of residential customers. Aurora is owned by the Tasmanian government and has historically been the only retail option for most households. In recent years, limited retail competition has emerged with a small number of other retailers entering the market, but Aurora remains by far the largest. TasNetworks is the sole distribution and transmission network operator across the state. The limited retail competition means that Tasmanian customers have fewer options for switching, but it is still worth checking whether your current Aurora plan is the most suitable for your usage pattern.

Common tariff types

Tasmanian households commonly use a general light and power tariff (flat rate), a heating tariff for off-peak electric heating, or a hot water tariff for off-peak water heating. The off-peak heating tariff (Tariff 41) is particularly important in Tasmania given the cold climate — it provides cheaper electricity for storage heaters and underfloor heating that operates during designated off-peak hours. Time of use tariffs are also available for customers with smart meters. If you use electric heating, making sure your heating system is connected to the correct off-peak tariff can make a substantial difference to your bill.

Tasmania-specific tips

Heating costs are the single biggest factor for most Tasmanian electricity bills. If you use electric heating, ensure it is on the correct off-peak tariff and consider upgrading to a heat pump, which uses roughly one-third of the energy of a traditional resistive heater. Tasmania's hydro-dominated generation means the state has some of the lowest-emission electricity in Australia, making electrification of heating an environmentally sound choice. Rooftop solar is less common in Tasmania than on the mainland, but it can still deliver solid returns — check your feed-in tariff rate with Aurora. Upload your bill to BillDecoder to get a clear picture of how your costs break down and whether you could save by adjusting your tariff or usage patterns.

State energy market information is general guidance current as of March 2026. Verify specific rates and regulations with the AER or the Tasmanian Economic Regulator.