Exorbitant fares on Uber during major traffic incidents and public transport delays could be stamped out by new Victorian laws, the Andrews Government has declared.

Uber users were left angry last Thursday when fares were much higher than usual, during Melbourne's train network shut down during the evening rush hour.

The ridesharing company uses "dynamic pricing", which means that when demand is higher fares increase. Users are given a quoted price before they accept a fare.

In one case $50 was quoted to get from Spencer Street to the other side of the CBD to Parliament Station.

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The Government is regulating ride-booking, with one piece of legislation before the Parliament and another due later this year.

It is understood the second set of laws will include rules around fares, but specific details are still being drafted and will require the support of other parties.

Uber surge-pricing 'unacceptable'

Victorian Public Transport Minister Jacinta Allan said the behaviour was unacceptable.

"As we are modernising this industry, as we are looking at bringing taxi and ride sharing companies on to a level playing field, we also want to make sure there is appropriate consumer protection mechanism in places," Ms Allan said.

Ms Allan said price hikes and taking advantage of people was "unacceptable".

"As people have more choice I think they'll be choosing those companies that put the interests of passengers first," she said.

Around 70 per cent of Uber trips during last Thursday's train chaos were not affected by dynamic pricing.

"While we saw demand peak around 5:00pm on Thursday, prices levelled off as more drivers went online to service the unprecedented demand created by the unexpected train outage," an Uber spokesman said.

"The estimated fare, including the application of any dynamic pricing, is clearly shown in the app to give consumers certainty around price before they choose to request a trip."

High capacity signalling announced

Ms Allan made the comments on Tuesday morning in Dandenong, where she joined Premier Daniel Andrews to announce that $1 billion would be spent on special high-capacity signalling on Melbourne's future Metro rail tunnel.

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Mr Andrews said the contract for the Australian-first signalling system had been won by CPB Contractors and Bombardier Transportation.

The signalling will allow trains to run every two to three minutes along the new train route using metro between Sunbury and Cranbourne-Pakenham.

"High-capacity signalling means more trains, less waiting and services so often you don't need for a timetable - you just turn up and go," Mr Andrews said.

The Government has also opened expression of interest for another $1 billion contract to design and build the tunnel entrances at South Yarra and Kensington, as well as upgrading track power and existing signals.

The announcement follows Sunday's news that a group involving John Holland and Lend Lease had won a $6 billion contract to build the tunnels and five new stations.