MELBOURNE, AAP – Struggling Victorian small businesses could soon save money through a plan to reduce their annual energy bills by almost $400 a year.

Under the same plan, released by the Essential Services Commission on Tuesday, households could also save $75 a year.

Commission pricing director Marcus Crudden says the proposal to reduce the Victorian default offer would see as many as 50,000 small businesses and 200,000 households benefit.

The Victorian default offer has been in place since July 2019 and provides all Victorians with access to a fair price for electricity.

Submissions on the proposal close on October 8.