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Melbourne Water bosses responsible for a multi-million dollar customer rip-off have been rewarded with bonuses, Seven News can reveal.

Nine senior bureaucrats who oversaw the $300 million bungle which ripped off Victorian water users have received $300,000 in performance bonuses.

The Melbourne Water management team took taxpayer-funded bonuses just one month after it was revealed they overcharged Victorian families by an average of $177 because of delays in building a desalination plant.

Victorian water minister Peter Walsh confirmed the bonuses this afternoon when questioned by Seven News.

The nine executives got an average of $32,000 each - a yearly wage for many Victorians.

Melbourne Water said the bonuses were given for other achievements and were in line with industry standard.

The company said they were reduced by ten per cent on last year's payment because of the overcharging debacle.

Victorian consumers will gradually get the overcharged money paid back in installments.

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