The Chamber of Commerce and Industry in Tasmania is mulling the possibility of re-consolidating the state's power generators in hopes of rationalising the region's energy business following the spiralling electricity costs seen in the state lately.

Chamber representative Robert Wallace said on Tuesday that the state may have to undo its earlier move of breaking the Hydro Electric Commission into three separate state-run companies as a Aurora, Hydro Tasmania and Transend may prove more cost-efficient in providing for Tasmania's energy needs.

Mr Wallace suggested that the government should reconsider the economic advantages to be gained in recombining the three companies as he stressed that Tasmanians need to institute "a close and transparent look into the costs and operations of all three utilities."

In its reaction, the state government welcomed the suggestions pushed forward by the state's business leaders, stating that it agreed with the opposition stance that the idea must be included in the investigation of Tasmania's energy sector, set to be undertaken by an independent experts' panel expected to be named this month.

In a related development, the Tasmanian government revealed that it may have to ditch the existing price caps on electricity and gas prices within the next four years and as mandated by the revised Council of Australian Governments, the state could develop and implement its plan by 2014.

In that light, Choice Magazine's Christopher Zinn told ABC that he is optimistic that the government would factor in the welfare of vulnerable consumers when it finally made its decision as he acknowledged that according to projections furnished by Origin Energy, power costs would jump by two-fold once carbon price is introduced in the next five to seven years.