The regulator has determined a 7.1 per cent reduction in energy prices for residential customers and an 11 per cent reduction for small business owners.

This will translate to a $183 drop on average for a small business owner's electricity bill.

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Energy Minister Guy Barnett said overall the price reduction represented savings of at least $30 million for the state's 243,000 households and about $5.3 million in savings for 29,000 small businesses.

"More than seven years on from our election in 2014, in real terms, prices have decreased by 18 per cent for residential customers and decreased by 27.1 per cent for small business customers," he said.

Aurora Energy chief executive Rebecca Kardos said the price drop would be welcome to many customers who had experienced a challenging year.

She said the company had more support available than ever for customers who were struggling to pay their energy bills including a $5 million COVID-19 support fund and flexible payment options.

TasCOSS chief executive Adrienne Picone welcomed news of a price reduction, but called on the government to commit to implementing the lowest regulated prices in the country.

"The fact remains there are market offer prices on the mainland lower than Tasmania's standing offer price and these market offer prices fell by almost 9 per cent over the last year," she said.

"TasCOSS estimates there are 59,000 Tasmanian households currently experiencing energy poverty.

"These are families and individuals who are rationing their energy by going without basic activities like showering, cooking or heating to save a few dollars on their electricity bill.

"Rationing energy use often leads to significant health and wellbeing impacts, especially at this time deep into a Tasmanian winter."

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