The competition watchdog says the debate over whether Australia has a clean energy target needs to be separated from discussion about power prices.
Turnbull government MPs are at odds over whether to push ahead with a clean energy target to deal with the issues of affordability, reliability and emissions.
Former leader Tony Abbott has talked down the idea, calling for an end to all subsidies for renewable energy, with the focus instead on bringing more coal-fired power online.
Malcolm Turnbull says renewables supported by batteries and hydro storage are an important addition to the energy mix and will help meet Australia's emissions targets under the Paris agreement.
But the prime minister's not averse to a future proposal for coal-fired power station, provided the investors can show it is highly efficient and low in emissions.
Australian Competition and Consumer Commission chairman Rod Sims says the debate has become confused, as the clean energy target and the existing renewable energy target were about "sustainability".
"I don't think that debate has much to do with affordability," Mr Sims told Sky News.
He says the government needs to deal with all of the contributors to power prices: network, generation, retail and "green" costs.
Mr Turnbull's decisions on reducing the ability of network companies to legally challenge the energy regulator's decision and getting the retailers to better inform their customers about cheaper deals were worthwhile, Mr Sims said.
But the government also needed to look at the so-called "gold plating" of networks, get more businesses to meet their own energy needs, and lower the cost of gas.
