The new $250 million Power Saving Bonus scheme forms part of the state governments 2022/2023 budget, set to be released in full on Tuesday night.

It aims to encourage Victorians to reassess their energy consumption rates and plans and builds on the $250 concession card bonus announced in last year's state budget.

OTHER NEWS:

Premier Daniel Andrews said the initiative was aimed at easing the growing cost of living. "This is a great opportunity for Victorians to save money, ease the cost of living, and cut their energy bills," he said.

"Big power companies rely on people not having the time, information or knowledge to save money. But we know better deals are out there - and we're helping Victorian families find them."

According to the state government, seven out of every 10 users can save money by switching energy offers, with typical annual savings of $330 on energy bills in the first year of switching alone.

OTHER NEWS: New investor for Fortuna Villa has owner Paul Banks optimistic about the future

Minister for Energy, Environment and Climate Change Lily D'Ambrosio said this could mean families could save up to $580 per year.

"This one-off $250 payment provides immediate financial relief for those struggling to pay their power bills - while also helping Victorians find a better energy deal," she said.

"The fastest way to bust energy bills is to look for a better offer with households able to save an average of $330 in the first year alone - that's what this Power Saving Bonus is all about."

Applications for the Power Saving Bonus open on July 1 and the state government will release its full budget on Tuesday evening.

More to come.

Our journalists work hard to provide local, up-to-date news to the community. This is how you can access our trusted content: