The policy, which would see power price increases capped at 2.5 per cent for the next three years, comes as families and businesses statewide grapple with growing costing of living pressures.

Labor energy spokesman Dean Winter said power bills would rise by 20 per cent unless the Tasmanian government intervened.

"That's a massive increase in prices for businesses and households," Mr Winter said.

"Capping power prices is something the government has done in the past and should do now."

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Hobart cafe owner Julia Ridgers said power expenses are the second most important expense in a business next to securing the premises.

Ms Ridgers, who runs Brookfield Shed Cafe, said she had seen an increase in power prices in recent times.

"It's significant as we can't pass those prices on to our customers," she said.

"My fear is that these sorts of increases will bring a slow death to our business.

"With everything going up we don't know how to budget any more for these things."

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She said they may move to a smaller venue in the future as power prices continue to affect their budget.

"Normally we expect power to be high in winter time to heat the premises.

"Now, in between the summer and the winter period, there's not a lot of difference."

Mr Winters said businesses like Brookfield Shed Cafe already have pretty large power bills, and an extra 20 per cent could be crippling.

"You have businesses already paying over $20,000 a year and if you add 20 per cent to that you're talking about over $4000 more on top of a business that's already dealing with higher transport and food costs," he said.

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"We've built hydroelectric power systems in Tasmania for 100 years, we have no shortage of electricity.

"Instead of the government taking a $50 million windfall gain from Hydro Tasmania, they should re-distribute that back to Tasmanian households and businesses through a price cap."

Primary Industries Minister Jo Palmer said she understood Labor's plan could cost around $50 million each of those three years.

"There's no detail on where that money's coming from," Ms Palmer said.

"What infrastructure are we going to cancel in order to pay for that?"

She said the Tasmanian government was looking for a long-term solution to power prices.

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"It's really easy when it comes to the issue of pricing policy which we know is impacting families and businesses to just say here is a short-term fix," Ms Palmer said.

"What's the best thing we can do for Tasmanians for decades to come, not just a couple of years?

"There's no answer to any of these questions, just a headline that's put out there that's easy to make with no substance."

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