The draft laws include penalties and the potential forced break-up of companies, which the government argues are needed to ensure power retailers and generators do not make decisions which deliberately jack up the price of electricity.

The coalition thwarted Labor's attempts to delay debating the bill until next year for more than an hour on Wednesday, eventually extending sitting time in the lower house to deal with the legislation.

Debate over the bill is set to continue on Thursday, when parliament is due to rise.

As he introduced the bill to the lower house earlier in the day, Treasurer Josh Frydenberg said the powers would help increase competition and ensure cheaper power prices for consumers.

However, Labor's treasurer spokesman Chris Bowen has accused the coalition of trying to "ram" the bill through parliament without adequate consultation.

Mr Bowen said he was only able to "skim through" the more than 100 pages explaining the draft laws, which were only made available on Wednesday afternoon after being introduced.

The "interventionist nonsense" would hurt investments and see power prices increase, he added.

Energy Minister Angus Taylor says the powers are necessary as 80 per cent of the market is dominated by three major players.

Centre Alliance MP Rebekha Sharkie has indicated her support for the bill, which could see the coalition get it over the line in the lower house.

The legislation creates three kinds of prohibited conduct for energy giants across Australia, which if breached, will see them hit with the "big stick".

The three areas under watch are retail pricing, the electricity contract market and wholesale market.

If found to be withholding savings to customers or preventing competition in the market, the draft laws give the ACCC the power to fine a company, apply for an injunction to stop the behaviour or alert the treasurer.

The treasurer could then apply to Federal Court to see that energy company sell off or separate its assets.

Business groups and energy companies have been scathing of the proposal, with concerns that it will create a worrying precedent.

The federal government has state-owned electricity giants in its sights for the proposed powers.

Scott Morrison says the Queensland government has been "dividend stripping" out of the electricity sector to prop up the state budget.

"They've been jacking up power prices to strip that money away from mums and dads and pensioners and small businesses and family businesses," Mr Morrison told parliament.

Mr Frydenberg told reporters privatisation was not a plausible scenario, but state-owned assets could be split to then go head-to-head in the same market.

Australian Associated Press