Power distributor Aurora Energy said on Friday that Tasmania's electricity costs has been recently justified by a report which showed that state residents were actually enjoying relatively cheaper power bills as compared with other states and territory in Australia.

In its latest nationwide study of electricity prices, the Office of the Economic Regulator has reported that Tasmania is one of the states in country where power consumption is much cheaper, with only residential customers in ACT and Victoria paying less.

Aurora retail manager Paul Bloomfield pointed to the report as a testament of Tasmania's affordable electricity costs as compared with that from the national levels, adding that "this independent report shows that prices have been increasing at a faster rate in most other states and territories than they have in Tasmania."

Mr Bloomfield gave assurance at the same time that "we are very conscious of the impact of recent price rises on our customers, however, Tasmanians should understand their experience is consistent with a national trend of power prices increasing well ahead of inflation."