Mr Hodgman said he would discuss potential funding models for the second interconnector at the Joint Commonwealth and Tasmanian Economic Council meeting.

He said Tasmanian taxpayers should not have to foot the entire cost for the project.

Mr Hodgman said a second cable would ensure greater energy security for Tasmania and would encourage investment in the state's renewable energy sector.

The discussion around a second interconnector has increased since a fault was detected in the sole Basslink cable in December.

Meanwhile, Energy Minister Matthew Groom said Opposition Leader Bryan Green was trying to engage in a "scare campaign" by telling Tasmanians they should start to conserve power.

Mr Green said the state was heading into "uncharted territory" with storage levels set to drop to 14 per cent and said Tasmanians should be aware power rationing was a real possibility.

He said the prediction that energy levels would drop to 14 per cent was without precedent and urged Tasmanians to be more aware of their consumption.

Mr Groom said the government continued to receive advice that there was "no need for people to do anything more than what is prudent and sensible".

He said the government was doing everything possible to provide energy security for Tasmanians.

Basslink is expected to provide an update on the repair progress on Friday.