With Hydro Tasmania on target to double its profit to $200 million in the year to June, the government has decided to change chief executives, following the reorganisation of the Tasmanian electricity industry.
One of the most experienced executives in the industry, Roy Adair, has left the company.
Stephen Davy, chief commercial manager at the company and a former senior official with Eraring Energy, will fill the role in the interim.
The change follows Hydro Tasmania gaining control of the Tamar Valley Power Station, giving it access to gas supplies for the first time, which may become part of its product offering more broadly.
"The board and Roy have agreed that now is the time for change and to make way for new leadership of the business as it looks ahead to the post-reform period," chairman David Crean said.
Over the past two years, Hydro Tasmania has earned a profit of more than $100 million, Mr Crean said, and was on track to double that this financial year.
Hydro Tasmania has benefited from the introduction of the carbon tax and, through its Momentum Energy unit, has carved out a position on the mainland as one of the largest of the second-tier marketers.
"Hydro Tasmania is now looking for a new long-term leader who can take the business into the future in a united and cohesive manner," Mr Crean said.
Finalising a replacement for Mr Adair is expected to take two months, he said.
The change at Hydro Tasmania comes as the head of Snowy Hydro is also changing, with the appointment of a former head of Infrastructure NSW, Paul Broad.