As the Turnbull Government pushes ahead with its energy policy, it has maintained coal must be part of the mix to keep power prices down.
Energy Minister Josh Frydenberg says the southern states have had to pay the price for moving away from coal power.
The independent Australian Energy Market Operator agrees.
It says the coal sector should not be expanded but existing power stations should remain operational as long as possible to prevent future price shocks as Australia transitions to renewable energy.
