Energy minister waves big stick at Liddell

Energy Minister Angus Taylor is keeping close tabs on an ageing coal-fired power station in NSW, warning that its closure must not affect electricity supply or cause price spikes.

Mr Taylor has not ruled out using the government's so-called "big stick" legislation - which threatens to break up power companies that are found to be raising prices unfairly - on AGL's Liddell coal-fired power station that is slated for closure in 2023.

"If there is not either extension or like-for-like replacement this will be unacceptable, because you will see upward pressure on prices and a loss of reliability," he told ABC's Insiders program on Sunday.