Tasmanians feeling the pinch to benefit with power bill discounts

All Tasmanian households will receive a $250 one-off bill credit, while small businesses will be given $300, to help cope with winter bills through an increased Renewable Energy Dividend.

Energy minister Nick Duigan said Tasmanians would receive the concession before the end of the financial year.

"We've already done work through our energy retailers in Tasmania to make sure that this dividend gets to the people who need it most," Mr Duigan said.

"Obviously, this is a really large cost of living initiative by the government. This is one of the levers we have to pull and we've pulled it hard.

"This is a $74 million commitment from the Tasmanian state government into the cost of living issues being faced by Tasmanian households and businesses."

The Renewable Energy Dividend is paid whenever Hydro Tasmania returns more than $90 million in dividends, and under normal circumstances would be worth $30.

Premier Jeremy Rockliff said the government understood households needed a little extra help given the prevailing economic conditions.

Mr Rockliff said although Tasmanian power prices were the lowest in the nation, households were still "feeling the pinch".

"it's important that governments take action when it comes to doing all we can to put downward pressure and reduce those energy bills, whatever it may be," he said.

Opposition energy spokesperson Janie Finlay said the rebate was a welcome sweetener for households, but work needed to be done to bolster the state's electricity supply for the future.

"One-off election promises for power rebates will be welcomed by Tasmanians struggling with record high prices," she said.

"But the fact is Tasmania isn't producing enough power any more.

"That's holding back Tasmanian businesses, industry and our economy, and costing jobs - and the Liberals have no plan to address it."