AURORA Energy has posted a record profit for its final year of operation before residential customers are given a choice of electricity retailers.
Aurora recorded an underlying profit of $76.5 million for 2012-13, up $20 million on the previous year's result.
The outgoing chief executive of the state-owned business, Peter Davis, said the increase was not due to higher power prices, but $31 million worth of savings from job cuts, improved processes and less debt.
"It's been a very difficult couple of years, we've had to reduce our workforce over the last two years in reflection of the fact that there's not as much building work going on in the network as in the past," Dr Davis said.
Dr Davis expected profits to continue after Aurora's retail arm is sold off later this year as part of a major shake-up of Tasmania's energy sector.
"Most of the profits and value in the organisation actually come from the electricity distribution network, which is the poles and wires throughout the state, and they will continue to be owned by the government through Aurora."
The news will provide a much needed financial boost to the state government ,which will collect almost $40 million in dividends and taxes from the company.
Tasmania's Council of Social Services called on the government to use the extra money to assist low-income and disadvantaged Tasmanians who had been hit with "unsustainable" power price increases over the past decade.
"While recent moves by the state government to minimise electricity price increases for consumers in the short to medium term are very welcome, the cumulative increase in electricity costs over the past decade have placed an often intolerable burden on low-income households in Tasmania," TasCOSS chief executive Tony Reidy said.
The government is in negotiations with potential buyers of Aurora's retail arm with the successful new retailers scheduled to take over on January 1.
Aurora's distribution arm will merge with Transend with the single entity to start operating from July next year.