Victorian households and businesses could be given financial incentives to cut their electricity consumption during heatwaves next summer, as part of a strategy to avoid a repeat of this year's damaging Australia Day weekend blackouts.

The state's power companies will soon present the Andrews government with their proposals to encourage consumers to switch off non-essential appliances such as computers, microwaves and pool pumps when demand soars on hot days.

Consumers could be paid to power down at times of peak demand. Credit:Darren Pateman

Almost 95,000 Victorian homes and businesses lost power on the Australia Day weekend as a record-testing heatwave sparked the biggest surge in power consumption the state had seen on a Sunday.

Customers across the state were left without power for up to 30 hours, triggering thousands of compensation payments.