The money will be dished out with “no strings attached”, according to Victorian Premier Dan Andrews, which means households won’t actually need to switch providers.
“It's the easiest $250 you'll ever pocket,” Andrews said back in May when announcing the program.
While households don’t need to make the switch, Andrews expects many people will discover they are not on the cheapest energy plan.
According to the Victorian government, as many as seven out of 10 users save money by switching providers, saving $330 on average in the first year.
“Big power companies rely on people not having the time, information or knowledge to save money,” Andrews said.
“But we know better deals are out there, and we’re helping Victorian families find them.”
How to get the cash payment
Victorian households will be able to submit an application for one $250 payment each through the Energy Compare website.
Victorians who do not have access to a computer or the internet can call the Victorian Energy Compare helpline or receive support from community outreach partners to receive the payment.
There will be no limit on these payments.
The bonus will run until June 30, 2023.
Don’t wait to switch retailers
Due to ongoing issues plaguing the energy sector - including unexpected coal power station outages and high global prices for fossil fuels - the market regulator has had to up the DMO prices.
These changes are due to come into force on July 1.
Compare the Market spokesperson Chris Ford said people would be wise to shop around to find a better rate as soon as possible before retailers hiked rates further.