Treasurer Josh Frydenberg is seeking vast new powers to order energy companies to sell their assets, according to a draft law that has been leaked to reveal his wide discretion under the contentious new plan.

Parliament will be asked to give the Treasurer the personal power to force the big energy retailers to restructure their companies and sign financial contracts, in a government bid to pressure the industry into cutting prices.

The scope of Treasurer Josh Frydenberg's personal discretion under the proposed law has provoked concerns among lawyers and company executives being consulted on the changes. Credit:Alex Ellinghausen

The draft law, obtained by Fairfax Media, includes a new provision that allows the Treasurer to issue a “divestiture order” to tell companies to dispose of any assets while restricting the potential buyers.

The legal power is vital to the government’s energy policy after two years of clashes with the industry, including demands from some Coalition backbenchers that AGL must sell its Liddell coal-fired power station in NSW.