Families and individuals who use the Service NSW website to check if their energy company's rate is competitive will receive a one-off $250 payment they can use towards their energy bills, The Daily Telegraph reports.
The Service NSW website includes a free service that compares electricity and gas services for households and small businesses.
The one-off payment will be available from July and can be used whether you choose to change energy providers, or stay put.
It's expected about two million energy users would take up the offer, costing the government about $500 million.
The $250 would make it easier for households to switch providers and shoulder the rising cost of living, Premier Dominic Perrottet said.
NSW Labor Leader Chris Minns called the incentive a "cash splash" which would be followed by a year of steadily increasing power bills.
"What the government hasn't told you is that it's a one-off payment," Mr Minns said.
"The following 12 months, electricity prices are expected to jump by an additional 30 per cent.
"I think many taxpayers in NSW will be asking, 'Why did you sell off the power stations in the first place?
"This is an admission that the government's reckless privatisation agenda has smashed household budgets."
