Victorian Premier Daniel Andrews has repeated his claims that his controversial energy plan to bring back the state-owned State Electricity Commission will bring down power prices, despite the federal budget pointing to a 56 per cent spike over two years.

Victorian Energy Minister Lily D’Ambrosio has also played down the importance of the National Electricity Market at a major energy summit in Melbourne where investors warned that the energy plan needed to avoid squeezing out the private sector while the Victorian Opposition complained that Mr Andrews was in “fairyland”.