Victorian Households to Receive Three Hours of Free Midday Power from October

Victorian households will be able to access the Midday Power Saver program from 1 October 2026.

To help residents reduce energy costs and ease pressure on the electricity grid during peak hours, the Victorian Government has mandated that most electricity retailers provide three hours of free electricity to eligible households between 11 am and 2 pm each day.

The Victorian Department of Energy, Environment and Climate Action (DEECA) says households across the state have installed a record number of rooftop solar systems. Solar power generation is typically at its peak during midday, helping lower wholesale electricity prices.

The free electricity plan will apply to households with a smart meter whose electricity retailers have more than 1,000 customers. The government requires most retailers to offer the plan to eligible customers.

According to DEECA estimates, households that shift between 5% and 30% of their electricity use to the free midday period could save between $149 and $428 annually. Households with electric vehicles could save an additional $674, bringing total annual savings to as much as $1,012.

DEECA recommends using energy-intensive appliances such as hot water heat pumps, dishwashers, washing machines, dryers, and electric vehicle chargers during the free midday hours. Residents are also encouraged to use timer functions on appliances to maximise savings.

However, households that are unable to adjust their electricity usage habits may see limited savings and could potentially experience higher electricity bills.

DEECA states that renewable energy currently accounts for 44.6% of Victoria’s electricity generation. Government figures show that around 2.6 million households are eligible for the program.

From 1 October 2026, residents will need to contact their electricity retailer to confirm whether the offer is suitable for their household and to sign up for the program.

Customers who register will receive a cooling-off period and can opt out of the Midday Power Saver program at any time without paying exit fees. Participation in the scheme will also not prevent retailers from offering existing or future “three hours free” market deals.

The Essential Services Commission has also confirmed that the 2026–27 Victorian Default Offer (VDO) will be lower than the previous year.

From 1 July 2026 to 30 June 2027, the average annual electricity bill for households on the VDO is expected to decrease by 5%, while small businesses are expected to see an average reduction of 6%.

Sources:

• Victorian Department of Energy, Environment and Climate Action (DEECA)
• Essential Services Commission
• Victorian Government

More Details:

https://www.energy.vic.gov.au/households/save-energy-and-money/victorian-midday-power-saver

https://www.esc.vic.gov.au/electricity-and-gas/prices-tariffs-and-benchmarks/victorian-default-offer/victorian-default-offer-price-review-2026-27

https://www.premier.vic.gov.au/best-midday-power-offer-country