Concession card holders in Tasmania will automatically receive a $125 discount on their Aurora power bill from June 30 as the state government attempts to provide some relief during winter.
The policy was announced during the election campaign and applies to holders of concession, healthcare and veterans cards, covering about 90,000 Tasmanians.
George Town Neighbourhood House project co-ordinator Jessica Berger said cost of living pressures were hurting Tasmanians statewide, particularly in her community.
"There are so many people struggling to just survive in George Town, in the whole of Tasmania, it'll make a big difference to them, especially coming into winter," she said.
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"It would have been the difference between letting the kids do some extracurricular, or having to stop them and pay a bill really, that's the difference. It means that they don't have to give up something in order for us to keep running the household."
The state government has contributed $12 million for the policy.
Launceston RSL sub-branch president Graeme Barnett said winter was a difficult time for veterans, and he welcomed the government's commitment.
"$125 might not sound like a lot, but by crikey, when you're trying to pay the bills every month, it really helps," he said.
Energy Minister Guy Barnett said eligible Tasmanians would not need to do anything to receive the discount, provided Aurora was aware of their status.