Launceston's Grain Grocer one of many feeling cost of living squeeze

The Labor opposition has repeated calls for a price cap however the state government claims its concessions for small businesses and residents, and other measures, are focused on driving down bills in the long term.

From July 1, 35,000 eligible small businesses can claim a rebate of $650 on their power bills, which the state government says is more than the average increase of between $126 and $284.

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Joanne Walsh, owner of the Grain Grocer in Launceston, said this amounted to "chump change" compared to her increased costs of doing business.

"Since last year it has been extremely difficult with all the prices rising, especially with transport, the cost of living and now with the Super increase," Ms Walsh said.

"The concession ... I can't say it's doing anything.

"It's just getting to a point where you're now going to have to start questioning things."

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The Tasmanian Economic Regulator approved a 9.5 per cent increase to Aurora Energy's power prices in June 2023, after accepting an 11.88 per cent hike the previous year.

Ms Walsh said she was faced with difficult choices about pricing her goods, as she had to balance increasing her prices to match her costs with customer expectations and budgets.

"I spend timeless hours out the back trying to get the best prices for everyone, especially my beautiful customers," she said.

"To see these customers that come into my shop, to have the conversation and to hear those quiet conversations between their partners.

"Can they afford those extra oats, can they afford that little bit extra pasta. It's something so basic, it's heartbreaking."

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Opposition Energy spokesman Dean Winter claimed the state government had broken a 2021 election promise and left Tasmanians exposed to market volatility.

"We're in Tasmania, we're in the home of renewable energy in Australia," Mr Winter said.

"Yet, we're having so many businesses and households battling with the high cost of energy because the Liberals broke their promise.

"The government promised that if there was high volatility within the national electricity market, they would cap power prices for households and small businesses like this one."

Mr Winter said the allegedly broken promise remained on the Tasmanian Liberals' website.

The Tasmanian Liberals website which lists the party's 2021 election promises states the government would "retain the ability to re-introduce one or both" capping prices or the Commercial and Industrial rebate scheme.

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Bass Labor MHA Janie Finlay said a Labor government would implement a 2.5 per cent cap on power price rises within 100 days if elected.

"We invested in the hydro, we own the lines, we own the retailer, and Tasmanians should have the benefit," Ms Finlay said.

"It's been extraordinary in recent weeks that we've seen all sorts of business peak bodies, and our farmers and our fruit growers come out and talk about the government's power tax.

"It's time they stopped, and it's time that the government implemented a power cap for power prices."

Speaking on Sunday, July 2 in support of the concession scheme Minister for Energy and Renewables Guy Barnett said the Tasmanian Government was delivering on a commitment to deliver "lowest, or amongst the lowest" regulated energy prices.

Mr Barnett said the Energy Saver Loans scheme continued to provide no-interest finance for home owners and businesses to purchase energy-efficient products, and there were also subsidies available.

"We are also trying to encourage households, small businesses and larger businesses to invest in energy efficient products to help them permanently reduce their bills," he said.

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