TASMANIAN power prices are set to fall further than initially thought following the introduction of retail competition into the electricity sector.
The independent Economic Regulator has approved a power price fall of 5.23 per cent from January 1 next year.
Premier Lara Giddings welcomed the ``excellent news'' this morning, saying it would save the average household $140 a year.
Ms Giddings said the reduction was possible from the energy reforms, as well as work ``with our government business enterprises to drive down their costs, to create efficiencies within those agencies that have meant we can pass it on to the consumer''.
Ms Giddings said the price reduction came at a time when ``Queensland was facing a 20 per cent increase... and WA have seen their power prices double''.
Confirmed retailers will be announced by the Government later this year.