Prime Minister Malcolm Turnbull has announced a new approach to power price management, with the Clean Energy Target (CET) to be ditched for a National Energy Guarantee.
Under this new system, retailers use a percentage of electricity from dispatchable sources, such as gas, batteries, pumped hydro or coal.
This would then result in reliable power being delivered, as well as consideration of renewable energy.
Under the CET system, electricity companies would have had to set a percentage of their power to be derived from low emissions technology which would ultimately cost the consumer more.
The new plan does not subsidise for renewable energy, but instead includes an energy intensity calculation which puts Australia back in line with its Paris target.