Labor-led jurisdictions have criticised the Turnbull government's abrupt ditching of the emissions component of the National Energy Guarantee, saying the move essentially ends the scheme as a national policy.

"There was chaos and confusion when I walked into cabinet," Anthony Lynham, Queensland's Energy Minister, said on Monday. "There was a new energy policy when I came out."

The states and territories are currently assessing legislation intended to support the reliability component of the scheme.

Prime Minister Malcolm Turnbull addresses the media at Parliament House as he dropped the emissions component of the National Energy Guarantee. Credit:Alex Ellinghausen

The Commonwealth government had been preparing the emissions target until Prime Minister Malcolm Turnbull formally announced on Monday that it would drop the pollution component in order to focus on bringing down prices alone.