Electricity prices in Tasmania explained

How Tasmania’s hydro-powered electricity market works: Aurora Energy, the standing-offer regulated price, TasNetworks, and what really drives Tasmanian bills.

By EnergySorted Editorial Team · Updated 17 July 2026 · 5 min read

A hydro-powered island grid

Tasmania is part of the National Electricity Market and is connected to the mainland by the Basslink interconnector, but its generation mix is unlike anywhere else in Australia. The overwhelming majority of Tasmania’s electricity comes from hydro power, supplemented by wind, which makes it one of the greenest grids in the country.

Hydro gives Tasmania a stable, largely renewable supply, but it is exposed to rainfall and dam levels. In dry years the state may need to import power over Basslink or run backup generation, which feeds into wholesale costs. The interconnector also links Tasmanian wholesale prices to the mainland market.

Aurora Energy and limited competition

For residential customers, Aurora Energy is effectively the retailer in Tasmania. Full retail competition for households has not meaningfully opened, so most Tasmanians do not have a field of retailers to switch between the way NSW or Victorian customers do. This is an important expectation to set: shopping around for a cheaper retailer is largely not an option for Tasmanian households.

The single distribution network is run by TasNetworks, which operates the poles and wires across the state. As with other regulated markets, the network portion of the bill is set by regulation rather than competition.

The regulated standing-offer price

Because household competition is limited, Tasmania relies on a regulated standing-offer price. The Tasmanian Economic Regulator oversees regulated retail prices, so what most households pay is a regulated tariff rather than a competitively won market rate. This gives price certainty but means the usual "switch and save" lever is largely absent.

Tasmania also offers time-based tariff options and specific tariffs for things like heating and hot water, which reflect the state’s cold climate and heavy reliance on electric heating. Choosing the right combination of tariffs for your household can make a real difference even without a retailer to switch to.

Where Tasmanian households can save

With switching largely off the table, the savings levers sit on your side of the meter: getting onto the most suitable tariff mix, reducing usage (heating is usually the biggest single load in a Tasmanian home), improving insulation and heating efficiency, and adding rooftop solar where the roof and budget allow.

Concessions are the other big lever. Tasmania runs its own energy concessions for eligible households, applied through your Aurora Energy account. EnergySorted’s retailer-switching engine is built for the competitive mainland markets, so it will not find you a new Tasmanian retailer, but its guidance on tariffs, usage reduction and concessions is where Tasmanian households should concentrate.

For the live picture — the plans we currently hold for Tasmania and how far its hydro grid sits below the mainland on AEMO’s carbon index — see electricity in Tasmania.

Frequently asked questions

Where does Tasmania’s electricity come from?

Mostly hydro power, supplemented by wind, making it one of Australia’s greenest grids. It is linked to the mainland by the Basslink interconnector, which it can use to import or export power.

Can I switch electricity retailer in Tasmania?

Generally not as a household. Full retail competition has not meaningfully opened for residential customers, so Aurora Energy is effectively the retailer and most households are on a regulated tariff.

Who sets electricity prices in Tasmania?

The Tasmanian Economic Regulator oversees regulated retail prices, so most households pay a regulated standing-offer tariff rather than a competitively priced market offer.

Who runs the Tasmanian electricity network?

TasNetworks is the single distributor operating the poles and wires across the state. The network portion of your bill is regulated, not set by competition.

How can Tasmanian households lower their bills?

Since switching retailer is largely unavailable, focus on the right tariff mix, cutting heating and overall usage, improving efficiency and insulation, adding solar where practical, and claiming state energy concessions.

What energy concessions can Tasmanians claim?

Tasmania offers an electricity concession and a heating allowance for eligible cardholders, applied through your Aurora Energy account. Our guide to the Tasmania electricity concession and heating allowance explains eligibility and how to register.

How do heating and hot water tariffs work in Tasmania?

Tasmania offers dedicated tariffs for heating and hot water that are cheaper per unit but only power those circuits, much like a controlled load. Getting the right mix of tariffs for your home is one of the few real levers when you cannot switch retailer.

Why is my Tasmanian winter bill so much higher?

Heating is usually the single biggest load in a Tasmanian home, so bills climb steeply in the cold months. Which heating type you use, and how well the home is sealed and insulated, makes the biggest difference.

Is rooftop solar worth it in Tasmania?

Tasmania has fewer sunshine hours than the mainland, but solar can still pay off, especially for daytime households, and it offsets power you would otherwise buy at the regulated rate. The payback turns on your roof, your daytime usage and the current feed-in rate.

Does the running cost of my hot water system matter in Tasmania?

Very much, because hot water and heating dominate a cold-climate bill. Comparing electric, heat pump and gas hot water running costs can reveal a big saving, particularly if an old electric tank is due for replacement.

Can EnergySorted help Tasmanian households?

Its retailer-switching engine is built for the competitive mainland markets, so it will not find you a new Tasmanian retailer. Its guidance on tariffs, usage reduction and rebates and concessions is still where Tasmanian households should focus.

General information only, current at the time of writing. Not financial advice. Rebate schemes and rules change; always confirm details with your retailer or state government energy site.