The Victorian Government has announced the Victorian Midday Power Saver which will give consumers 3 hours of electricity free-of-charge in the middle of the day.

This initiative aims to help reduce energy bills and ease demand on the electricity grid during peak periods.

How it works

The Midday Power Saver will be available to households from 1 October 2026, offering a free power window between 11 am and 2 pm every day, and most retailers will have to make the offer available to their customers.

The Midday Power Saver is entirely optional and will be regulated and reviewed annually by Victoria’s independent energy regulator, the Essential Services Commission.

To keep energy bills low, the Midday Power Saver complements other Victorian Government initiatives such as Victorian Energy Compare and the Victorian Energy Upgrades program.

To sign up to the Midday Power Saver, you should contact your electricity retailer from 1 October 2026 and check whether the offer is right for your household.

While customers can save on their electricity bill by using appliances during the free three‑hour window, electricity prices outside these hours may be slightly higher and actual savings will be dependent on your ability to shift usage from more expensive peak periods to the middle of the day.

If you’re considering signing up to the Midday Power Saver, your electricity retailer will need to:

  • Inform you that the Midday Power Saver may not be suitable in all circumstances and is best suited to customers who can shift their electricity usage. Not shifting usage could result in higher electricity costs and customers may be charged if they exceed the fair use cap.
  • Provide information about the cost impact that the new tariff structure may have, including, in so far as possible, an estimate of the dollar impact.
  • Inform you about any other plans your retailer reasonably believes may be more suitable for you (based on any relevant information your retailer has regarding your energy usage).

The protections set out in the Essential Service Commission’s Energy Retail Code of Practice will apply to the Midday Power Saver. In addition, you will be protected by a cooling off period after signing up and be able to switch off the Midday Power Saver at any time with no exit fees. Customers on the Midday Power Saver will also be able to access support for payment difficulty and are protected if they rely on life support equipment or are affected by family violence.

You can also use the free and independent Victorian Energy Compare website, and speak with your electricity retailer, to help decide whether this offer suits your household.

Household savings

We’ve estimated that Victorian households who sign up to the Midday Power Saver could save between $149 and $428 depending on their living situation, and assuming a shift of 5 % to 30 % of energy use to the three-hour free window.

Households with an electric vehicle could save even more – an additional $674, and $1,012 in total – by charging during the free power period instead of at peak times.

Making sure the Midday Power Saver is right for you

It is important to check with your electricity retailer to make sure the Midday Power Saver is right for you. While you should see savings on your electricity bill if you move the use of your appliances to the free 3–hour window, there will be small increases in the price of electricity you use outside of these hours.

To get the most savings from the Midday Power Saver, you need to use energy intensive appliances like your hot water heat pump, dishwasher, washing machine, clothes dryer and EV charger during the free power period window instead of during more expensive peak electricity times.

Using a timer function on your appliances can help ensure you’re using free-of-charge electricity to lock in savings – even if you’re not at home. If you work from home regularly, it may be even easier to get the benefits of the Midday Power Saver.

How this is made possible

Renewable energy is the lowest cost electricity generation, and as Victoria’s share of renewables continues to go up, Victorians will see continued downward pressure on bills.

Victoria continues to have among the lowest wholesale electricity prices in the country, and these prices are projected to be the lowest into the future.

Victoria’s record uptake of more than 850,000 small-scale rooftop solar systems not only powers households, but drives down wholesale prices while the sun shines, meaning free power periods in the middle of the day are already available with some retailers in Victoria.

For the 2025 calendar year, 44.6% of the state’s electricity came from renewables, exceeding our 2025 renewable energy generation target of 40%.

This generation of cheap, solar energy not only powers up households but drives down wholesale prices while the sun shines, meaning free power periods are already available with some retailers in Victoria during the middle of the day.

Further support for households

  • In 2026, new rules are being introduced to help struggling households pay less for energy and receive better protections. As part of changes to the ESC’s Energy Retail Code of Practice, these reforms will make it easier to switch plans, get concessions, and avoid disconnection. Key reforms include:
    • stronger disconnection protections;
    • protections for those paying high prices;
    • retailers required to be more proactive about checking concession eligibility;
    • easier switching to a customer’s best offer; and
    • automatic best-offer switching for those experiencing payment difficulty.
  • Victorian Energy Compare: Victorian households can find cheaper offers by using the free and independent Victorian Energy Compare website.
  • Energy Assistance Program: In partnership with Anglicare Victoria, the program provides Victorian energy consumers with tailored, one-on-one assistance to navigate the energy market and save money on their energy bills.
  • Victorian Energy Upgrades program: Households and businesses can get discounts on energy saving products through the Victorian Energy Upgrades program and save hundreds on their energy bills annually.
  • Solar Victoria: Providing rebates and interest free loans for residential solar, batteries (loan only), and energy efficient hot water.

Information for retailers and industry

The Essential Services Commission (ESC) has provided the Minister for Energy and Resources information to support the design and implementation of the Victorian Midday Power Saver. The ESC advice includes:

  • Recommended tariffs for the first cycle of the MPS including applicable usage charges for consumption above the fair use cap. Tariffs are based on the final 2026–27 VDO price with a relative increase to tariffs outside the free period, aligned with the pricing and cost recovery method used for the SSO.
  • Recommended free usage period times for each distribution zone (11 am to 2 pm for all distribution zones).
  • Technical paper detailing methodology for determining recommended MPS tariffs.

Government will consider this advice from the ESC and finalise the new Order in Council for the Midday Power Saver ahead of the commencement date.

Resources

Frequently Asked Questions

  • The Midday Power Saver will be available from 1 October 2026 to households with a smart meter that are customers of a retailer with 1,000 customers or more. The offer will be regulated by Victoria’s independent energy regulator, the Essential Services Commission.
  • The Midday Power Saver complements other Victorian Government initiatives that help to keep energy bills low such as Victorian Energy Compare and the Victorian Energy Upgrades program.
  • The Essential Services Commission will determine the timing of the free three-hour window in each distribution network.

  • The Midday Power Saver will be available to households from 1 October 2026 and most retailers will have to make the offer available to their customers.
  • Use the free and independent Victorian energy Compare website at compare.energy.vic.gov.au and talk to your energy retailer to see if this offer is right for you.

  • Yes, the Midday Power Saver is made available to customers from 11am to 2pm every day. That means you can access three hours of free power even on weekends.

  • Market offers that provide three or more hours of free energy do not have regulated tariffs, meaning that retailers can choose how much they charge for energy consumption outside the free period.
  • These offers are typically tailored to specific customer cohorts, for example those with electric vehicles. They are also generally offered by select retailers and are not always available across all distribution zones.
  • The Midday Power Saver will establish a daily three-hour period, with regulated tariffs outside the free period to ensure households are not charged high costs for consumption they cannot shift.
  • The Midday Power Saver will ensure more households can access the benefits of midday solar generation, irrespective of which retailer they are with, or whether they have consumer energy resources (CER) installed.
  • Importantly, the Midday Power Saver does not preclude retailers from offering new or existing ‘three for free’ market offers.

  • Victorians who regularly work from home can also benefit from the Midday Power Saver.
  • Run your washing machine, clothes dryer, air conditioning, hot water heat pump, electric heating or even charge your electric vehicle if you have one during the free power period instead of during more expensive electricity periods.

  • To make sure you’re getting the most out of your Midday Power Saver, prioritise using energy intensive appliances like the air conditioner, electric heating, hot water heat pump, dishwasher, washing machine clothes dryer and EV charger during your free power period window rather than at peak electricity times.
  • Those who don’t work from home can use the timer function on appliances where possible to shift electricity use if you know you won’t be home during the free electricity window.

  • It is important to check with your electricity retailer to make sure the Midday Power Saver is right for you. While you should see savings on your electricity bill if you use your appliances during the free 3–hour window, there may be increases in the price of electricity outside of these hours.
  • In Victoria, retailers are required to give clear and understandable information before obtaining a customer’s explicit informed consent to enter a contract. This obligation applies to market and standard retail contracts, including the Midday Power Saver.
  • Some consumers may not be able to practically shift sufficient electricity usage to maximise the benefit of the Midday Power Saver. The Victorian Government has other offers available to consumers and should consider these options as well.

  • Customers with rooftop solar already benefit from generating their own electricity during the middle of the day. However, some solar costumers with an electric vehicle or batteries can benefit from the Midday Power Saver by using the free electricity to charge their vehicle or their batteries at times when their solar generation might be lower. This stored energy can then be used in the evening, when electricity prices are higher, helping to further reduce bills.
  • The Midday Power Saver may also work well for households with solar panels, a battery, pool pump/heating or well-insulated home, as energy intensive loads can be shifted to the middle of the day.  Automation and timers can make this easier, without needing to think about it every day.

Page last updated: 28/05/26