The Victorian government is considering forcing the electricity industry to re-regulate power prices in a move which could slice hundreds of dollars off household bills.

Multiple sources in the electricity sector have confirmed they had been told state Environment and Energy Minister Lily D'Ambrosio plans to press ahead with the re-regulation of prices, with one senior executive predicting it is a "done deal".

Electricity retailers say any move by the Victorian government to re-regulate prices would hurt small retailers and potentially hit investment in renewables.

Electricity retailers are already gearing up to fight the move, arguing it will hurt smaller players and hit investment in renewable energy.

The move to implement a so-called "Basic Service Offer" is one of 11 recommendations in a review of the electricity sector by former deputy premier John Thwaites. The review was handed to the Andrews government last month, and found prices have soared since the sector was de-regulated in 2008.