The government isn’t confident a planned gas-fired power plant will fill the energy gap, caused by the closure of AGL’s Liddell Power Station.

AGL is closing Liddell in 2022 and has confirmed it will open a new gas-fired plant in Newcastle.

Energy Minister Josh Frydenberg says the gas plant is good news, but won’t provide enough power to make up for the shortfall.

Liberal backbencher and Chair of the Environment and Energy Committee Craig Kelly says AGL is “taking the public for mugs.”

“This not only puts the state at risk of blackouts but more importantly it drives up the cost of electricity.

“If AGL were fair dinkum, they would put that plant Liddell on the market, there’s at least three other willing buyers, but they don’t want to because they want to keep the market short of supply to drive up the prices and to do over consumers.”

Listen to the full interview below