Labor pitches alternative power price plan

Labor has unveiled its own plan to push down power prices, and accused the coalition party room of "eating itself" over energy policy.

Simpler pricing and capped power price deals will cut $165 from the annual bill of more than a million households, with small businesses to save $1500 per year, Labor claims.

Opposition energy spokesman Mark Butler says the party speaks with "one voice" on the issue, unlike the government with some MPs openly against the National Energy Guarantee.

"Malcolm Turnbull is heading a government that is eating itself on power," Mr Butler told reporters.

The opposition's plan would protect customers from price gouging by introducing a new regulated capped offer to the market.

Labor will work with the states to implement a key recommendation of the Australian Competition and Consumer Commission from its inquiry into retail energy prices.

That recommendation would introduce a 'default' offer consistent across all energy retailers, instead of "outdated" standing offers which can vary considerably.

It would also make it easier for consumers to compare offers and save money by simplifying how energy retailers display discount pricing.

The default price would be set independently in each jurisdiction, with the Australian Energy Regulator tasked with delivering the reforms.

Labor claims the changes will mean increased transparency, simpler bills and downward pressure on prices.

Treasurer Scott Morrison said in embracing the idea of a default price - an idea the coalition had flagged support for "some time" ago - Labor was trying to pass off the government's work as its own.

"If Labor want to support the work the government is doing, that's fine. I would then encourage them to go further," Mr Morrison told AAP, suggesting the party should back the coalition's plan.

Labor has also committed to reaching 50 per cent renewable energy in Australia by 2030.

Australian Associated Press