Energy retailers will send more than 1 million letters to customers by Christmas explaining how they may be able to save money on their bills, Prime Minister Malcolm Turnbull says.

Key points: Energy executives met with senior government ministers for the second time

Energy executives met with senior government ministers for the second time The executives agreed to send customers letters inviting them to read advice on how to cut their bills

The executives agreed to send customers letters inviting them to read advice on how to cut their bills Executives at the meeting called for the introduction of a clean energy target

The agreement was reached after energy executives were brought before senior ministers for the second time this month, with television cameras invited to film the meeting.

Mr Turnbull said close to 2 million Australians were paying more than they needed to for electricity because they were stuck on contracts that were too expensive or inappropriate.

At a meeting earlier this month, energy retailers agreed to write to customers once they reached the end of a discounted plan.

On Wednesday they agreed to write to all customers.

The Prime Minister billed it as "further progress" and said customers would be provided with clearer information about their bills and potential savings.

"Letters will be sent out by Christmas and they will invite those customers to go to the Energy Made Easy website and see how they can save potentially a very large amount of money," Mr Turnbull said.

Energy Minister Josh Frydenberg said 50 per cent of Australian households had not changed retailers or contracts in the past five years, and might not be aware they could get a cheaper option.

"We're trying to lower power bills by empowering the consumer with the best available information to make it easier for them to move retailers and contracts," he said.

Companies urge action on clean energy target

While energy companies agreed to the letters, they used the meeting to call on the Government to introduce a clean energy target, as recommended by chief scientist Alan Finkel.

The clean energy target would provide financial incentives for producing low emission power, but it is opposed by some Coalition backbenchers who want to see more investment in coal.

Mr Turnbull wants the fractious debate to be resolved by the end of year and says the Government has no plans to invest in a new coal-fired power plant, which could appease concerned backbenchers.

Snowy Hydro chief executive Paul Broad said the target would give retailers more certainty and ultimately lower prices.

"[The target] is agnostic as to how it is delivered so it gets away from mines [being] bigger or better, coal being good or bad," he said.

"It gets us away from that argument, and that's its biggest strength. We in industry would agree that is the right outcome."

Mr Turnbull said coal would continue to play a key role in Australia's electricity market.

"We have a vested interest in demonstrating that coal has a high-efficiency, low emissions future," he said.

"I would welcome a high-efficiency, low-emission coal-fired power station being built in Australia."