The rift between the Greens and the government over their climate change scheme is deepening, with the minor party calling for compensation payments to be reviewed
Labor has dismissed new research that finds it may have over-compensated some of the nation's highest emitting power stations.
Climate Change Minister Greg Combet earlier defended $5.5 billion in compensation being paid to the country's dirtiest power stations and dismissed a report that claims coal generators will actually be better off as a result of the cash.
However, Frontier Economics says unless the international carbon price recovers, generators will be overcompensated under Labor's pollution price regime.
In a report released on Thursday, the modelling firm suggests brown-coal generators will be at least $400 million better off than if there was no carbon tax.
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"(But) more likely the collective gain in value of the brown-coal generators is around $1 billion," the report states.
