The relocation of the bulk of Momentum Energy's customer service operations to greater Hobart will employ 40 Tasmanian by the end of next month.
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The jobs, based at Momentum's phone-based sales centre in Cambridge, were previously carried out in Melbourne.
Hydro Tasmania chief executive Steve Davy said the eventual relocation of 70 total jobs plus the existing 20 call centre jobs means almost one third of Momentum's workforce were Tasmanians.
"Momentum Energy is proud of our Tasmanian heritage and ownership and it's very exciting to be able to deliver career opportunities to the people of Tasmania," Mr Davy said.
"It's particularly pleasing that we've been able to create jobs for some people affected by the retrenchments at the Vodafone call centre."
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Mr Davy said recruitment had been successful and would continue into February.
The relocation of 70 jobs was promised by the Liberals at the last state election.
Energy Minister Guy Barnett said the government was delivering on its promise ahead of schedule.
"By 2022 we will have 100 jobs based at Momentum here in Cambridge," Mr Barnett said.
Premier Peter Gutwein said the new jobs would see millions of dollars invested into the local economy.
On Twitter, Kingborough Mayor Dean Winter said the relocation was a "wasted opportunity."
"After it paid Vodafone almost $1 million to move out of Kingston and into the CBD, the least the government could have done is relocated these jobs to Kingston," Cr Winter said.