$300 million bushfire payout welcome: Vic

The Victorian government has welcomed the early resolution of the Murrindindi bushfire class action, and says the $300 million payout will not filter through to higher power prices.

Energy retailer AusNet and the state government on Friday agreed to an out-of-court settlement with families affected by the bushfire, believed to have been triggered on Black Saturday by a power pole fault.

Attorney-General Martin Pakula said the settlement avoided further delay and legal costs for victims.

"I think for the survivors of Black Saturday ... it at least provides some degree of closure and ability to avoid a long and costly legal battle and, hopefully, a degree of peace," Mr Pakula said on Friday.

"It has been a long process and it is I think good for those families, and for the state, that the ... terms of settlement have been agreed."

Mr Pakula said the payout costs, both for government and AusNet, were covered by insurance and so there was no justification for a hike in retail power charges to cover it.

"The Victorian government has made it clear that ... there shouldn't be a pass through to energy consumers," he said.

"Particularly given that SP AusNet's settlement, as I am informed, is covered by insurance."