Winter chill relief as $250 energy payments for Tasmanian households begin

The Supercharged Renewable Energy Dividend payments, which provide a discount to resident's first billing cycle in the new financial year, are set to come into effect.

The initiative isn't exclusive to any provider and is planned to cover all 254,000 homes on the island.

Minister for Energy and Renewables Nick Duigan said the payments would keep Tasmanians warm this winter.

"While Tasmania continues to have some of the lowest power prices in the nation, we know rising interest rates and inflation are hitting household budgets hard," he said.

"That is why we committed to providing this dividend in our first 100 days, helping Tasmanians who are facing steep increases to their cost of living get relief when they need it most."

There's greater savings in store for concession holders, who can expect to see $1429 on average shaved off their power bill as part of state and Federal Government programs.

"Also, up to 35,000 Tasmanian small businesses will be seeing a $300 credit on their energy bills," Mr Duigan said.

"This will include small businesses who pay through their landlord."

The Member for Windermere added that residents would receive a 0.5 per cent increase in the power bills this coming financial year.

"That's a really modest power price increase, it'll be between $5 and $15 for your typical household," he said.

"The amount of relief we're seeing, which is in the many hundreds of dollars for every household, more than covers that.

"I think it's also really important that we recognise that power prices in Tasmania over the last 10 years have actually gone down in relation to inflation."