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Residents in the Australian state of Victoria will be offered three hours of free electricity during the day from October under a new government plan aimed at reducing household energy bills.

The scheme is expected to help the average family save up to $300 per year by providing free daytime power seven days a week, outside peak morning and evening periods. Households with solar panels and battery systems could save more than $1,000 annually.

The government said about 2.6 million households will be eligible for the program, which requires customers to opt in through their energy providers. It will allow residents to run appliances like washing machines and dishwashers during the day at no extra cost.

Energy retailers will be required to offer discounted daytime tariffs, with the free power scheme set to begin on October 1. The exact timing of the free electricity period is expected to be announced in May.

The initiative is also part of the government’s broader push to encourage more people to work from home. Premier Jacinta Allan said it provides another incentive for remote work, helping households save both time and money.

However, the plan has faced criticism, with some arguing it may benefit wealthier households with solar systems, while energy providers have warned it could lead to higher costs outside the free period.

In addition, new regulations coming into effect on July 1 will require energy retailers to ensure customers who have been on the same plan for more than four years are paying a reasonable price, or be moved to a cheaper option.

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