A new board will be appointed to oversee the merger of Aurora Energy and Transend to run the transmission and distribution of electricity, Deputy Premier Bryan Green announced today.
The new single state-owned company is expected to be operating by July 1, 2014, saving at least $8 million a year.
"Combining these businesses will create a more efficient and effective business and help deliver the lowest possible electricity prices for Tasmanians," Mr Green said.
He said the government was moving immediately to recruit an independent chair to facilitate the merger of Aurora and Transend. The board would also include two directors from each of the current boards.
"We want this to be a seamless transition for employees of the two businesses with the new board to determine the best operating model and ensure the business is fully operational by July 1 next year.
"The energy reforms the Government is implementing are about delivering real benefits to Tasmanians while ensuring we maintain secure and reliable electricity supplies.
Mr Green said the government was also on track to introduce full retail competition and choice for consumers from January next year.
He said he was committed to providing certainty for Aurora and Transend employees as quickly as possible and that the sale of Aurora's customer base is on track to start by the middle of year, paving the way for retail competition for Tasmanian households.