Families and businesses across Melbourne are set to be hit a huge power price rise.

Over 160,000 customers, who have not changed their energy plan in a while, are on the default power offer, which is about to get a 7.8% increase.

For cheaper energy, Melburnians are being told to shop around or call their energy provider for the latest deals.

The increase will come into place from January 1, 2020.

For households, bills will rise by $110 to just over $1500 each year and the price for businesses will jump to $6400.

“Because of our reforms, retailers are now required to print their best offer on every bill so customers know exactly what they’re getting,” a Government spokesperson said in a statement.