"They have historically owned the [energy] assets. They still do in Queensland. They have been happy to hold back supply in order to get an increased price." Mr Frydenberg sits alongside former prime minister Tony Abbott during a parliamentary vote last month. Credit:Andrew Meares Mr Frydenberg will meet state and territory energy ministers in July to discuss Chief Scientist Alan Finkel's review of Australia's energy policies, which was handed to the Turnbull government nearly a fortnight ago. On the agenda of the meeting will be the states' renewable energy targets and other policies such as the Victorian government's moratorium on onshore conventional gas. Energy exploration has been a controversial topic at the state level, and some states have introduced temporary bans to take the political heat out of the issue.

But Mr Frydenberg said the states must accept the effect that "mindless moratoriums" had had on power prices. Environment Minister Josh Frydenberg says the decision is an endorsement of the government's plans to protect the reef. Credit:Alex Ellinghausen Energy policy continues to be a difficult area for the Turnbull government, which is struggling to come up with a response to Dr Finkel's report that will keep Coalition MPs happy. Outspoken Liberal National Party MP George Christensen said last week that the government would be better off building highly efficient coal-fired power stations, rather than introducing a clean energy target. Chief Scientist Alan Finkel has recommended the federal government adopt a clean energy target. Credit:AAP

He is one of a number of MPs – including former prime minister Toby Abbott – who have been critical of any change in government policy that would penalise coal producers. Senior MPs are being very careful in their choice of words when talking about the Finkel report. It was discussed by the Coalition party room last week in an unusual meeting that went for nearly three hours. More than 20 MPs raised reservations about the report at the meeting. Dr Finkel recommended a clean energy target as a way to reduce Australia's greenhouse gas emissions and lower household electricity prices. His report found power prices would be lower under a target compared with a business-as-usual scenario and predicted coal would continue to play a large role in power generation through to 2030.

Mr Frydenberg and Deputy Prime Minister Barnaby Joyce refused to knock back Mr Christensen's calls for the federal government to build new coal-fired power stations. The Turnbull government has yet to respond to the Finkel report. Mr Frydenberg will prepare recommendations for cabinet which, if accepted, will be taken to the party room. Ministers are acutely aware of the sensitivities inside the Coalition on the issue, which has dogged the Liberal and National parties for more than a decade. Loading "We have to proceed carefully, and I'm not going to be rushing the Commonwealth's position or in any way pre-empting the party room's deliberations of this issue because my colleagues come first, and we need to work out what our position is on the Finkel report," Mr Frydenberg said.