The Tasmanian Government is looking to cap the wholesale power price for 12 months.

The Government will reportedly introduce legislation this week to halt rising wholesale prices.

Energy Minister Matthew Groom said volatility in the national market following SA blackouts, issues in NSW and the closure of the Hazelwood power station were driving up power prices.

“From the Government's perspective, this is unacceptable,” Mr Groom said.

“These anticipated power process increases are just too high for households and small businesses to cope with and so the Government is intervening.

“We're going to directly intervene to introduce legislation into Parliament to enable the Treasurer to set the wholesale price for this reset on the first of July and deliver an outcome which is consistent with CPI of about 2 per cent.”

Mr Groom promised Tasmanians would not see a massive spike in power prices at the end of the 12-month cap.

“We will continue to monitor this situation,” he said.

“There won't be a price shock at the end of this — we're committed to ensuring there won't be a price shock for Tasmanian households and small businesses and that is why we're directly intervening.”

Opposition Leader Rebecca White said the state needed long-term certainty.

“There's no doubt that power price hikes are hurting people, but addressing the issue just for 12 months isn't a long-term solution,” Ms White said.

“This is a cynical political move from the Government, to put the issue off past the next election.

“It's not going to address the long-term issues that the state is facing, and it's a very short-sighted decision.”