The Tasmanian Government says it will not provide extra funding for the state-owned Hydro Tasmania electricity generator.

Hydro has been hit hard by record low rainfalls and a prolonged outage of its vital Basslink supply line.

The undersea cable linking Tasmania with the mainland broke before Christmas, but will not be repaired until late March.

Even before the outage, low dam storage levels were forcing Hydro to import about 40 per cent of Tasmania’s power.

In Tasmania’s mid-year budget update next month, there should be about a $75 million hit to revenue from Hydro over four years, due to the combined issues.

Opposition MP Scott Bacon says the Tasmanian Government needs to mount a stronger response.

“It's now a question of whether Hydro will require additional money from the Government to fund its ongoing operations,” he said.

Treasurer Peter Gutwein says state-owned electricity firm TasNetworks has already provided $120 million in equity to Hydro

“An increased equity injection is not something we are considering,” he said.

But Gutwein believes that dividend losses from Hydro will not have a major impact on the budget.

“Dividends from Hydro in any given year over the forward estimates equate to less than half of one per cent of overall revenue, so whilst it will have an impact it will not be material,” he said.