Hydro Tasmania has announced it is to cut about 100 jobs, citing the repeal of the carbon tax as a factor.

The state-owned power company attributed the cuts to the scrapping of the carbon tax, doubt over the future of the Renewable Energy Target, and a downturn in the consulting market.

In a statement, Hydro CEO Steve Davy said it would first look to reduce its workforce by natural attrition and a round of voluntary redundancies.

Hydro Tasmania has forecasted a profit of less than $20 million in the coming financial year.

This continues the trend of healthy profits in recent years, including a record pre-tax profit of $238 million for the last financial year.

But last year's windfall became a loss of almost $250 million when massive asset writedowns and the forced acquisition of the Tamar Valley Power Station was taken into account.

And today's statement declared that the outlook for the year ahead was challenging.

Managers at the firm, which employs about 1,100 people, have briefed their union.

Tasmania's Opposition Leader Bryan Green has blamed the Abbott Government for the cuts.

"The change to the carbon price, this is the consequence - 100 people will lose their jobs," he said.

Cuts come in Hydro Tasmania's centenary year

Yesterday the Federal Government saw its carbon tax repeal bills passed by the Lower House.

And following agreements between Prime Minister Tony Abbott and PUP leader Clive Palmer, whose party members hold sway in the Senate, the Upper House is expected to do the same in July.

However, State Growth Minister Matthew Groom has avoided attributing the cuts to the carbon tax and said: "There are a range of factors at play".

In a statement, Mr Groom said: "Hydro Tasmania has been around for 100 years.

"It was profitable before the carbon tax was introduced in 2012, it will be profitable after the tax is repealed."

The cuts, which will be made over two months, will come in the centenary year of Hydro Tasmania.

Since it began operations, the company has grown into the largest renewable energy producer in Australia, harnessing both wind and water to generate power that feeds into the national grid.