The federal government has again ruled out making dirty power stations pay for carbon emissions, less than a fortnight before it gets an expert report on the electricity market.
Energy Minister Josh Frydenberg says any prospect of imposing an emissions intensity scheme on the power sector was "certainly off" as far as the government was concerned.
The scheme would work by setting a benchmark level of emissions allowable per unit of electricity generated, and making power plants pay if they exceed that mark.
"An emissions intensity scheme does punish a number of the thermal generators at a time when we need to stabilise the system so we're not going down the path of an EIS," Mr Frydenberg told Sky News on Monday.
The emissions intensity of Australia's economy was now at it lowest point in 27 years, he said.
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Chief Scientist Alan Finkel is due to hand his final review of the future security of the national electricity market on June 9.
The government is also holding a year-long review of its climate change policies.
Days after that review was announced, Mr Frydeneberg and Prime Minister Malcolm Turnbull said the coalition would never back an emissions intensity scheme.
