A review of the government's cap on energy prices has received suggestions that reform could see consumers pay less than the capped price in future.
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Energy Market Consulting associates was recruited by Treasury to undertake a review of the government's energy price cap policy, the cost of wholesale energy in general, and a proposal to delink Tasmania from Victoria's wholesale energy prices.
A final report is due later this year.
EMCa released an paper last year as part of the review which detailed six options the government could take.
These included retaining the status quo and energy price cap, capping the wholesale energy price, or completely severing ties with the national energy market and trading energy through a newly established entity.
The state's big energy players, Aurora Energy and Hydro Tasmania, expressed support for a system which discontinued the energy cap but placed a ceiling on energy prices when the wholesale energy price was high.
EMCa said this option would implement a rebate scheme, remove barriers to retail competition as well as still support the government's Tasmania First energy objectives without distorting the market.
Aurora Energy chief executive officer Rebecca Kardos said the Wholesale Contract Regulatory Instrument need to be retained with any government policy to manage wholesale energy price volatility to work alongside it.
She said the company's preferred option supported the government's objectives but did not distort the efficiency of the pricing mechanism.
Ms Kardos said consideration should be given towards the government's policy to cap energy prices at the Hobart Consumer Price Index from 2018-19 in instances when the cap was above the wholesale reference price.
Hydro Tasmania chief executive Steve Davy said the preferred option was the only of the six that did not create potential competition law issues.
He said the company had not formed a view on how the rebate scheme, to replace the cap, would work but a set of principles should be developed to guide the scheme.