​​​The Regulator's functions under electricity legislation reflect that some electricity entities in Tasmania have significant market power and that most customers require protection through regulation of both price and conditions of supply.

The Regulator's objectives in the Electricity Supply Industry Act 1995 include:

• protecting the interests of electricity consumers;
• promoting competition and efficiency in Tasmania's electricity supply industry; and
• establishing a safe system and enforcing proper standards of safety, reliability and quality in the industry.
  

The Regulator has various functions under the Electricity Supply Industry Act including:

• administering the Tasmanian Electricity Code;
• administering the licensing system for the electricity supply industry;
• monitoring and enforcing compliance with licence conditions;
• monitoring relevant entities' performance;
• approving Aurora Energy's standing offer retail electricity prices for mainland Tasmania and Hydro Tasmania's retail electricity prices for the Bass Strait Islands;
• determining the regulated electricity feed-in tariff rate; and regulating certain financial risk contracts offered by Hydro Tasmania.