The Tasmanian Premier says the state's publicly-run electricity network has protected consumers from the price hikes seen interstate.
The Prime Minister wants to set up two new consumer bodies and cut power bills by reducing over-investment in electricity networks.
Julia Gillard says the changes would also allow for a stronger industry regulator.
The Tasmanian Premier says the federal plans will have less of an effect in Tasmania than interstate.
Lara Giddings says price hikes in Tasmania has been modest because the state-run power network is better managed than private networks elsewhere.
She says public ownership has prevented the so-called "gold-plating" of power networks "This year and next year we're expecting a price increase in electricity of no more than inflation," she said.
"Now that's extraordinary when you consider other states in this year have had to face price increases of 15, 20 per cent.
"Here in Tasmania our government-owned businesses have been very responsible in the investment in the infrastructure we need to insure that we don't have blackouts or brownouts around the state.
"So at a national level, we absolutely support what the Prime Minister is doing."