Australians would pay more for power at peak times, like hot days, and fork out extra at bowsers under a government blueprint to grow the energy sector.
A planned overhaul of electricity tariffs to time-of-use charges could also increase power bills for people with solar panels to make sure they're paying their fair share of network upkeep.
Federal Industry Minister Ian Macfarlane outlined the tariff proposal in the energy white paper released on Wednesday, saying it would give consumers information to make choices about their energy use.
"Consumers can use energy whenever they like, however they like, as long as they're prepared to pay for it," Mr Macfarlane said.
It would be voluntary and require households to install smart meters to monitor how much energy they're using.
The plan aims to avoid power price rises like the 50 per cent hikes endured over the past few years as companies invested in new poles and wires to cope with peak supply.
The blueprint also revealed Australia is the only member of the International Energy Agency with a shortfall in its oil reserves, meaning motorists could face a multi-billion-dollar hit at the bowser to meet obligations.
IEA rules say members must have at least 90 days worth of oil imports in reserve. Australia holds only 52 days worth at present.
"We are committed to addressing that this year," Mr Macfarlane said.
"That cost will almost undoubtedly be borne particularly by industry and motorists."
When oil supplies are limited prices increase and this flows through to customers.
The report sets out an aim to improve business energy efficiency by 40 per cent by 2030, reduce regulation for coal seam gas projects and promote more privatisation of state electricity.
Australian Chamber of Commerce and Industry chief Kate Carnell said making vehicles and buildings more energy-efficient, and other voluntary measures, could boost GDP by 2.8 per cent over the next 15 years.
The paper outlines an Australian Competition and Consumer Commission inquiry into the eastern Australian gas sector to increase transparency and identifies opportunities for more foreign investment.
But it barely acknowledges climate change.
"It's so backward," Greens leader Christine Milne said.
The paper touches on Australia's "good potential" for a range of renewable energy sources but reaffirms a commitment to cutting the renewable energy target.
It also reiterates plans to abolish the Clean Energy Finance Corporation and the Australian Renewable Energy Agency and fails to mention post-2020 emissions reductions targets.
Climate Institute chief executive John Connor described the paper as a "wilfully deluded document" that ignores the opportunities and challenges of climate change.
The government doesn't rule out nuclear energy, with Canberra closely watching the outcome of South Australia's royal commission into the possibility of a local industry.
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