GOOD news has arrived in time for the new year with the economic regulator approving electricity prices, which will see a 5.22 per cent drop from January 1.
The price decrease will apply to all residential customers and small businesses that have not entered into a market retail contract.
Premier Lara Giddings welcomed the drop in prices.
"While electricity prices around Australia are continuing to go up, large bill shocks are a thing of the past in Tasmania," Ms Giddings said.
"Retail competition will be introduced as planned from July 1 next year, which will help ensure we continue to have the lowest possible power prices into the future."
Acting opposition leader Jeremy Rockliff said any decrease was welcome, but it was too little, too late.
"On the eve of an election, Tasmanians are very well aware of the pain they've had to endure of 65 per cent price hikes in the last seven years," he said.
The Tasmanian Economic Regulator said the price reflected market conditions following delay of the sale of Aurora and was consistent with the price determination released earlier this month.
Aurora will be the sole retailer until the new financial year.
It is required to publish its approved prices before January 1.