Climate Change and Energy Efficiency Minister Greg Combet announced the cash payments on March 30.

“The government is implementing measures to underpin a successful energy market transition,” he said.

“Energy Security Fund cash payments are part of a broader package designed to ensure secure energy supplies as the nation transforms to a low carbon future.”

The cash assistance will be provided with respect to eligible generators in June.

Combet’s announcement has drawn fire from the gas sector.

Australian Pipeline Industry Association chief executive Cheryl Cartwright branded the $1 billion payment “dirty money”

She said it would disadvantage the Australian gas industry’s ability to assist in the reduction of greenhouse gas emissions.

The Australian Coal Association had “no comment” on the $1 billion funding.